Day traders must be having fun with General Motors and Ford.
Last Friday I was talking to an auto industry source who is very close to management at both Ford and GM, and he told me that he bought a bunch of GM and Ford shares on Friday when Ford was trading below $2.00 a share and GM was trading below $5.00.
“What is the downside risk at this point?” asked my source. “All it will take is for the market to have a big day, and you gotta make money.”
How true. Today, GM closed up 33%, and Ford was up over 20%. Not6 a bad one-day return for those who had the guts to take the plunge. The question is…..how long does he hold on to the shares?