Rare GE Signal Flashes Again

GE is eyeing its longest daily win streak since February 2017

Oct 8, 2018 at 2:07 PM
facebook X logo linkedin

While the broader stock market suffered last week, General Electric Company (NYSE:GE) shares enjoyed their best week since March 2009. What's more, the stock -- which is higher today on upbeat analyst attention -- could enjoy more upside, if a recent technical signal is any indicator.

GE shares rallied last week as traders applauded a new CEO, who will receive payouts if the security rises at least 50% and stays at that level for at least 30 consecutive trading days. As such, the former Dow stock gained 16.74% last week, and came within 1% of its 100-day moving average -- a bullish signal, historically.

It's just the third time in 2018 that this GE signal sounded. Since 2009, there have been 36 signals, after which the shares went on to average a one-week gain of 0.6%, per data from Schaeffer's Quantitative Analyst Chris Prybal. Further, the stock was higher 61% of the time. That's compared to an average anytime one-week loss of 0.1%, with a 49% win rate.

One month later, GE was up 1.1%, on average, and was higher 56% of the time. Two months after a signal, the stock was 2.8% higher, on average. The security was higher 56% and 61% of the time, respectively. That's compared to average anytime losses over the same time frames, with a win rate below 50%.

It's the same story over the long term. At the six-month marker, for instance, GE was up 4.9%, on average, with a 59% win rate. One year later, the shares were 5.9% higher, on average, and in the black 68% of the time. That's compared to average six-month and one-year losses of 1.5% and 0.3%, respectively.

GE after 100day MA signals

Today, GE stock is up another 2.4% to trade at $13.50 -- set for its highest close since mid-July -- after Barclays upgraded the shares to "overweight" from "neutral," with the analyst waxing optimistic on new CEO Larry Culp. Separately, the company's GE Capital arm agreed to sell $1 billion of energy investments to Apollo Global Management. The equity is pacing for a sixth straight daily gain, which would mark its longest daily win streak since February 2017.

GE stock chart oct 8

There's plenty of room on the bullish bandwagon, if GE once again outperforms following the aforementioned technical signal. Currently, just four of 13 analysts deem the equity worthy of a "buy" or better endorsement, leaving the door open for additional upgrades to lure more buyers. Likewise, the stock's Schaeffer's put/call open interest ratio (SOIR) sits a 1.96 -- the highest percentile of its annual range, suggesting near-term options traders haven't been more put-biased in the past year.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI