GM appears to be on track to file for Bankruptcy at 8 a.m. tomorrow. It was only a matter of time, most people who understood the gravity of GM's situation knew it was a dying enterprise from the time it . Karl Denninger's blog The Market Ticker has a good breakdown of the ramifications this will bring, specifically the bondholders will be wiped out. Obviously the suppliers who have been struggling with GM for over a year now are not going to be paid on current orders along the supply chain. Who knows what this will bring market wise, hell it could already be baked in. IF that is the case we will probably be flat monday. If it is not the case this thing is going to .30c PPS, traders will rip it apart.. IF they can get their hands on shares, it is on the hard to borrow list. My thought process is currently in a bearish overall cycle and believe this is bad for the markets, because mom and pop are going to sell, they were naive enough to believe this would never happen. Maybe word of the BK got out late friday, causing a massive short position to puked up, possibly because they were banking on a worse scenario in regards to GM. Tomorrow will tell.

you have it folks, GM has traded below 1 dollar PPS. How sad this story has become. UAW is to blame I believe, their shotty workman ship produced shitty cars for years, now it is coming back to haunt them. The UAW doesnt care they just kept demaning more and more benefits, more money more buyouts... Do they not understand you cannot opperate a business if the expenses of the business are higher than the revenue? I doubt they understood this, if they did they probably would all still have job security. rant over.

Marc Faber said yesterday:

I think today was supposed to be yesterday, given the . The market is back to is old tricks, market down/commodities up. Yesterday I talked a bit about how the instiutions were selling into the propped up market, looks like i was right. The imaginary mom & pop buyers who are buying into this wonderful market, as the government wants us to thingk, were not there today to save the day, no buy programs today. Market falls. whala.

Well, damn ill admit yesterday was quite the surprise to me, i should have seen it coming. HA As for Google, i have posted charts of google in the past, basically showing a megaphone pattern formation, with google minding the channel. Past charts HERE & HERE. As you may all know already i do not make many "calls" i tend to focus on the general market as a whole, but i did highlight an entry point on google around 370 with a target of 415 intermediate term. It looks like we are still on target, we will see how close we come to 600PPS. IF the market takes a dive, it looks like we are heading down below the mid line of the channel, in that case i will set a new target of 330PPS.

I hope the home gamers out there are following the game being played by the media. Whats the name of the game you ask? "lets change sentiment at key reversal levels". How's that for a game? According to google, if you search "stock market collapse" you get 5.4 million results, if you search market rebound you get 1.2 million results. Just a little fun with google, but this shows there is still a great deal of thinking on the bearish side of the bridge. If you watch cnbc tomorrow i bet you will notice a bearish overall tone. Is this because the players who run the show over at cnbc know we are at a key reversal level, specifically on the SPX? More chance than not they do understand this but they have a short memory over there. I am not going to single out cnbc as the sole source of the bs i believe Macke was talking about in his rant, every popular market related media source cheer leads the market up and down. Is this bad? i think no, but once again everyone should be made aware of these occurrences. Some of you out there might think this is a bit obvious but you would be suprised how many people simply do not understand the art of stock market operation. It takes a market to make a market. If you look at the chart of the SPX i posted last week, you will see we are now at the upper limit of the down trending channel, when did the media start pushing out stories about the rally being a bear rally, not the real thing, there are still problems yada yada..real answer is, when we started testing these levels. we have come to far to fast, let see how this week plays out.