GE Down 10 Days in a Row

Two days ago we noted that General Electric (GE) had been down eight trading days in a row. After two more days of losses, GE has now crossed into double-digit territory. GE is currently tied for the longest losing streak in the Russell 1,000 along with CNW, GHL, and ISIL.

Since 1980, GE has only had one other losing streak of ten days or more. Way back in August 1985, GE actually went down for eleven straight days before finally registering an up day. Since it's one of the most widely held stocks in the world, both by portfolio managers and General Electric employees, there's no doubt that quite a few people are heading home wondering what it's going to take to see some green next to GE.

The S&P 500 is also on a four-day losing streak of its own. Below we highlight the prior four-day losing streaks since the last bear market began in October 2007. As shown, the index has averaged a decline of -0.03% on day five with gains 5 out of 9 times. Since 1927, the average change on day five has been -0.01% (compared to a gain of 0.03% for all days since 1927). Over the next week, however, returns get significantly better. Since 10/07, the S&P has averaged a gain of 0.74% in the week after a four-day losing streak. Since 1927, the index has averaged a gain of 0.31% over the next week.

Comments

[apppro:]

My question is what does all this nasty market performance prove? Are we all that willing to let a few short-term thinking option traders/traitors take us ALL back down to levels we should have never been at in the 1st place?

We must start INVESTING in this Nation and we must stop all this short-term gambling that has encompassed the markets for the past 10 years.

The 4 Golden Rules:

1. Reinstate the Up-tick rule
2. Crack down on naked short selling
3. Institute some rules on what should be said on National TV to prevent rumor-mongering
4. Pass a Wind-Fall Capital Gains Tax of 65% on ALL short

AND

Revised Tax Rules:

1. Capital gains under <6 months - 55% tax on capital gains
2. Capital gains 6 > 12 months - 45% tax on capital gains
3. Capital gains 1 > 2 years - 35% tax on capital gains
4. Capital gains 2 > 5 years - 18% tax on capital gains
5. Capital gains 5+ years - 5% tax on capital gains
6. Most critical of all — Institute a capital gains tax of 55% on ALL short sales not directly tied to a long buy by a licensed hedge fund. I'm tired of paying for the pure shorts 3rd vacation home.

Oct 29 07:14 AM

[donzoab:]

Taxing trading in that way is toutamount to socializm. What if we taxed your business like that. Liquidity in the markets are necessary to attract investment dollars.
I agree that some tactics need to be revised, i.e naked shorting but taxing traders is the wrong way to go.

Oct 29 07:50 AM

[TCK:]

Don't under estimate the market manipulation on the upside.

In the last 10 years we have seen the tech, oil, and housing bubbles created in part by fast money and speculation.

Oct 29 08:04 AM

[ex GE'er:]

"there's no doubt that quite a few people are heading home wondering what it's going to take to see some green next to GE"...

The answer is simple. Get rid of Immelt and put a credible leader in place who can define a corporate strategy for GE.

Oct 29 08:29 AM

[apppro:]

Yes and true, but on the way up - no one gets hurt - it's when a few pull the rug out over a few weekends with no plans for rebuilding that causes the BIG problems.

And as far as that other person equating my tax plan as socialism - my business is NOT gambling. Want to gamble go to a real casino and leave our financial markets alone. lol


On Oct 29 08:04 AM TCK wrote:

> Don't under estimate the market manipulation on the upside.
>
> In the last 10 years we have seen the tech, oil, and housing bubbles
> created in part by fast money and speculation.

Oct 29 08:34 AM

[tc1:]

GE is going to be fine for the longer term as it continues to downsize its financial segment, continues to grow its other segments, and has its corporate realty segment regenerated with the general expected improvement of that sector over the coming years after a necessary nasty plunge in the meantime (yes, a very mean time for everyone during this nasty recession and its jobless recovery initial aftermath).

Long GE at avg pps of $13.69.

Oct 29 09:31 AM

[KevyIrish:]

GE has 500 Billion dollars of Debt to service on the Liability side of the Balance Sheet. I could go on and on about the dubious valuations on the Asset side, and the dubious income (tax credits) on the Income Statement, but I think that first sentence kind of sums it up. Find me one other corporation in the world with that level of debt to service both nominally and as a percentage of (dubious) capital and (dubious) income.

Oct 29 10:49 AM

[User 377068:]

Right on except I would tax the shorts at 90%. I hate those SOBs.


On Oct 29 07:14 AM apppro wrote:

> My question is what does all this nasty market performance prove?
> Are we all that willing to let a few short-term thinking option traders/traitors
> take us ALL back down to levels we should have never been at in the
> 1st place?
>
> We must start INVESTING in this Nation and we must stop all this
> short-term gambling that has encompassed the markets for the past
> 10 years.
>
> The 4 Golden Rules:
>
> 1. Reinstate the Up-tick rule
> 2. Crack down on naked short selling
> 3. Institute some rules on what should be said on National TV to
> prevent rumor-mongering
> 4. Pass a Wind-Fall Capital Gains Tax of 65% on ALL short
>
> AND
>
> Revised Tax Rules:
>
> 1. Capital gains under <6 months - 55% tax on capital gains
> 2. Capital gains 6 > 12 months - 45% tax on capital gains
> 3. Capital gains 1 > 2 years - 35% tax on capital gains
> 4. Capital gains 2 > 5 years - 18% tax on capital gains
> 5. Capital gains 5+ years - 5% tax on capital gains
> 6. Most critical of all — Institute a capital gains tax of 55% on
> ALL short sales not directly tied to a long buy by a licensed hedge
> fund. I

Oct 29 11:16 AM

[LPC:]

GE has so many shares outstanding (10.6 Billion) that only large holders of the stock (funds, pension plans, etc) can make it move. The stock is being played by these entities, they sell it right after earnings are reported and buy it back about a month before the quarter ends. In mid November the stock will start to go up again.

Right now GE looks like a good stock to own for the long run.

Oct 29 11:28 AM

[bbinaz:]

GE has been my "mutual fund" and I am l-o-n-g!!! I firmly believe that the short traders have undermined our system of investing. While I am opposed to the socialism it might smack of, I totally approve of the idea of super taxing profits coming from short trading as a solution to normalize/stablize this.

Oct 29 12:06 PM

[untrusting ...:]

Total nonsense. Shorting has nothing to do with undermining the investment/capital markets. Shorting provides a lot of useful functions to the capital markets including: improved liquidity, exposing overvalued stocks and scams, providing balance and fairness to markets that are already skewed to upside bias, and many other fundamental advantages. To claim that shorting undermines investing is to simply show a lack of understanding of how the market functions as well as a total lack of logical reasoning. If anything, shorting keeps the market considerably more balanced and honest (if that is even remotely possible) than it would be without shorting. Furthermore shorting comprises a very small fraction of the market to begin with, maybe something like on average 5-10% of outstanding shares, so it simply cannot have much effect on the overall market when compared to the long shares outstanding.


On Oct 29 12:06 PM bbinaz wrote:

> GE has been my "mutual fund" and I am l-o-n-g!!! I firmly believe
> that the short traders have undermined our system of investing. While
> I am opposed to the socialism it might smack of, I totally approve
> of the idea of super taxing profits coming from short trading as
> a solution to normalize/stablize this.

Oct 29 03:09 PM

[EARLPEARL:]

wake up man.....markets should be 40% lower if not for all the suckers in this latest SUCKERS RALLY


On Oct 29 07:14 AM apppro wrote:

> My question is what does all this nasty market performance prove?
> Are we all that willing to let a few short-term thinking option traders/traitors
> take us ALL back down to levels we should have never been at in the
> 1st place?
>
> We must start INVESTING in this Nation and we must stop all this
> short-term gambling that has encompassed the markets for the past
> 10 years.
>
> The 4 Golden Rules:
>
> 1. Reinstate the Up-tick rule
> 2. Crack down on naked short selling
> 3. Institute some rules on what should be said on National TV to
> prevent rumor-mongering
> 4. Pass a Wind-Fall Capital Gains Tax of 65% on ALL short
>
> AND
>
> Revised Tax Rules:
>
> 1. Capital gains under <6 months - 55% tax on capital gains
> 2. Capital gains 6 > 12 months - 45% tax on capital gains
> 3. Capital gains 1 > 2 years - 35% tax on capital gains
> 4. Capital gains 2 > 5 years - 18% tax on capital gains
> 5. Capital gains 5+ years - 5% tax on capital gains
> 6. Most critical of all — Institute a capital gains tax of 55% on
> ALL short sales not directly tied to a long buy by a licensed hedge
> fund. I'm tired of paying for the pure shorts 3rd vacation home.

Oct 31 04:27 PM

[EARLPEARL:]

ge is will be 9 bucks by end of 2009 or will be bankrupt......ge capital is bleeding badly

Oct 31 04:29 PM

[EARLPEARL:]

ps i own alot of 10 dollar puts for end of 2010

Oct 31 04:30 PM