Despite the fact that the USD is undergoing some serious devaluation and the DJIA is also having some serious issues there is some temporary relief in sight. As GM began to sell its 478 million shares it was thought that $30.00 was optimistic and now the price has climbed to $33.00. This is a huge turnaround for GM who was more or less in bankruptcy just six years ago. This remarkable IPO is the second largest ever and as GM’s stock continues to gain strength the DJIA will recover some of its losses. This will of course have a positive corollary effect on the USD as well so traders on the forex currency exchange should certainly take note of this and stay alert.
GM still has an awful lot of debt to pay back to the US government however it is on the right track and has posted record profits this year and last. Much like a national government GM cut half of its brands and laid off many employees in an effort to make the company economically viable. So far so good as GM’s stock sale has proven fruitful and the government is dialing back its ownership of the company. In a few more years the government should be out of the company altogether.
Since the USD has been falling lately against the Euro and other stable currencies it is a good time to examine trades with this and other pairs. Gains made by the Euro and the Japanese Yen are sure to be shrugged off to an extent over the next 48 hours as the US stock market rallies. These are definitely not intraday trades and should be made with conservative SL/TP figures. Utilize proper pivot points to avoid taking losses on this trade and never make any assumptions on the Forex market.
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