GE - Monthly chart - LONG I believe the new CEO John Flannery with pursue with the GE digital initiated by Jeff Immelt. GE is an old and traditional Engineering manufacturer but not driving crazy in the internet era where companies like Google, Facebook, Yahoo, Amazon, etc are taking the most advantage of Internet. In theory, GE wants to become digital because of the larger profit margin and lower cost.
A typical profit margin for most businesses at GE is 30%, while being digital makes your profit bigger of up to 70% without any headache dealing with Manufacturing, custom, procurement, labor, energy, etc.
This is how I see GE stock for the next 10 years.
GE
October 20 Earnings: General Electric - Higher Industrial OutputShares of General Electric have come under pressure in the last year due to management's uncertain theme regarding the company's future after GE Capital spin-off.
The spin-off aided the company's focus on its core industrial business providing core products and services to fast growing industries.
Following higher industrial output numbers and an overall increase in demand from the aerospace and military, GE should be turning around.
Strong demand for its software and its focus on Internet solutions should boost margins in the coming years.
I believe General Electric will cruise through this quarter, however guidance will remain shifty.
I'm starting General Electric with a $28.00 PT for the post-earnings move with a tight stop at $22.00
THE WEEK AHEAD: GE, CSX, PYPL EARNINGS; MBI, PEARNINGS
GE announces earnings on 10/20 (Friday) before market open. With a background implied volatility in high 20's (28% as of Friday close), it isn't particularly high from a premium selling standpoint, but I could see this as a potential acquisition opportunity via a November 17th 22 short put (paying .32 at the mid), in spite of the fact that the company's being a decent dividend bearing play is waning. Alternatively, the November 17th 22 short straddle pays 1.37 at the mid. Going pure volatility contraction play closer in time doesn't pay all that much, with the October 27th 22 short straddle brining in short of 1.00 at the mid.
CSX announces on Tuesday before market open. Background implied volatility's in the mid-30's which places it in the upper fourth percentile of where it's been over the past year. The October 27th 51/55 short strangle's paying 1.24 at the mid, with the comparable defined risk iron condor at 48/51/55/58 paying .92.
PYPL, with a background implied around 30 goes on 10/19 (Thursday) after market close, with the Oct 27th 65.5/71.5 short strangle paying 1.55, and the delta neutral 62.5/65.5/71.5/74 iron condor in the same expiry paying .95.
NON-EARNINGS
MBI, with a background implied of 66 (at the very high end of its range), probably only makes sense as a short put/acquire/cover cycle trade, with the November 17th 6 short put paying .35 at the mid and the 7 paying .76. The former would yield a cost basis of 5.65 on assignment; the latter, 6.24.
P has a background implied of 67 (mid-range over the past year), with the December 1st 7 short put paying .27 (cost basis of 6.73 if assigned) and the at-the-money 8 paying .66 (7.34 cost basis on assignment).
VIX/VIX DERIVATIVE TRADES
Currently, no term structure or contango drift trades are in the offing. The first VIX future trading at >16 is way out in May, and the VIX/VXST ratio finished Friday's session at around .84.
ge - general electricI'm long the 31 February calls of GE, I do have the positive expectancy that the stock will bounce from the Yearly Pivot of 31 area, and move 35 area.
we'll see in the upcoming days if the 31 pivot point will hold and an upside breakout will occur.
anybody following this idea, should place stops on the 30-31 area.
GE weekly playing off Fibonacci levels for support/resistanceThe $GE weekly appears as a channel up coming into a rising wedge coupled with neg divergences in RSI and Chaikin Money Flow.
I've highlighted notable points of support and resistance within the channel, as relative to the 200 MA and Fibonacci levels. Expecting a move back to the 61.8, and potentially the 200 MA/lower channel extreme.