Best First Half In 117 Years

A car company just had the best first half in its 117-year history.

General Motors (GM) went off while everybody was watching the chip stocks.

They beat earnings for the 16th quarter in a row in July, put up $3.57 against the $3.20 the street wanted, and raised guidance on every single line. First-half earnings came in 25% above any first half they’ve ever posted.

The CFO said the stock was a bargain at $75.

It hasn’t traded at $75 since.

That’s why it’s on my list today: the chart finally caught up to the fundamentals.

The setup:

Daily TPS, and all three pieces are there.

Trend is up, and the stock is sitting near all-time highs after a 73% run over twelve months. It’s well above the 200-day at $72.61 and the 50-day at $76.94.

The pattern is a clean consolidation. It gapped hard on that July print, ran to $91.85, and has spent five weeks digesting the move without giving any of it back.

Squeeze is firing across the daily and shorter timeframes.

The daily true range is running about 61% of the average true range, which tells you the stock has gone quiet, and quiet ahead of a squeeze release is exactly what you want.