GM Strikes Are Not What They Used to Be

The Morning Line for Wednesday Published Tuesday, October 1, 9:20 p.m. ET GM Strikes Are Not What They Used to Be "As goes GM, so goes the nation." That was certainly true in the 1950s, when the statement supposedly was made by the company’s CEO during Congressional testimony. But it is not even remotely true any longer. GM still matters, of course, just not much. Striking workers have idled 30 auto plants across the nation for 16 days, which, believe it or not, is the longest such shutdown in nearly 50 years. At issue are pay and benefits for 46,000 full-time factory employees. We should wish them good luck. And their employer, too, while we’re at it. As far as Wall Street is concerned, because GM makes actual things and employs men and women who get their hands dirty, the company might as well be manufacturing lavatory pucks. The financiers love companies with ‘disruptive’ business models that put everyone out of work. GM, unfortunately, is a conspicuous disruptee. The last of the dinosaurs. $100 Million Rounding Error The automaker supposedly is losing between $50 million and $100 million per day, but that’s just a rounding error compared to the daily price swings in the shares of two glorified advertising agencies that portfolio managers cannot get enough of: Facebook and Google. GM shares are near the middle of a $20 range that has contained them for the last five years. A glance at the chart suggests that unless the strike stretches on for another month or two, the stock will not likely fall more than an additional $1 or $2 before picking up structural support from a key low at 35.58 recorded on August 28. The company reportedly has $17 billion in cash to tide them over; workers are getting strike pay of $250 per week. Can you guess which will win? Careful, because that’s a trick question. [View Post on the Rick's Picks WebsiteÂ]( We’ve had a lot of requests from traders around the globe for Rick to host his workshop at various hours in their local time zones. The solution… our extremely popular workshop,  "How to Become a Consistently Profitable Trader" (without constantly getting stopped out of winners!) is NOW available on demand for your convenience! No more need to rearrange your schedule so that you don’t miss out on this powerful tool packed workshop, watch it when its best for you! [Sign Up For The Workshop]( Step #1View My Free Content? [View free active trades]( #2Join My Trading Community:[Facebook]( l [Twitter]( l [YouTube]( Step #3 Start A Free Trial Subscription of Rick's Picks[Start my Subscription]( Step #4Learn to Trade The Hidden Pivot System Yourself[Join the Free Workshop]( Copyright © 2019 Hidden Pivot Enterprises, All rights reserved. Disclaimer - This email is for information purposes only and should not be considered personalized advice or a solicitation to buy or sell any securities.   [Unsubscribe]( Rick's Picks - Hidden Pivot Enterprises PO Box 270646 Louisville, Colorado 80027 United States