A look at the chart on Wednesday May 25th led me to conclude that GMO would not last long at $3.50 or $4.00. It closed on Thursday May 26th above the 200 day moving average and on Friday May 27th it broke the intra day $5.00 level and closed at $4.92. When I studied the chart it scared me to see how close this stock came to the feared “Death Cross.” For some of my readers who don’t know what the “Death Cross” is, it is when the 50 day moving average crosses under the 200 day moving average. It is almost always a sign of bad news.
Disclosure: I am long GMO.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.