Flexibility Is Key

For the past few weeks, we've heard nothing but bad news from General Motors (GM). There has been one recall after another. It appears as if this is a kitchen-sink run of recalls. It has made the stock tough to own for those who bought in January. I avoided it, similar to an IBM (IBM). It just didn't seem like a winner; however, GM's price is moving higher. It doesn't appear as if a huge fundamental change is taking place, but technicians are noting the strength and buyers are hitting the market.

General Motors (GM) -- Daily Source: StockCharts.com View Chart » View in New Window »

As I mentioned, this chart, until recently, has looked awful since January. A clear breakdown said stay away. Then, three days ago, something happened. GM broke recent resistance and suddenly the chart looked worth buying. The chart also says take some off around $37.50, or look to buy on a successful retest of $35.50. So why does this matter? It speaks to flexibility -- flexibility that both fundamental investors and technical investors should take advantage of. ...190 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.