GM - Fiat

According to
the FT ($$),

On Sunday, Italian newspapers reported that
Fiat and GM were set to announce a settlement to scrap a disputed put
option that would have allowed Fiat to force GM to buy its
loss-making car unit.

Papers said GM would pay Fiat about
1.5-1.8 billion euros in cash to cancel the put and change the
structure of a joint venture in engines and platforms in Fiat’s
favour.

Nobody at Fiat or GM was immediately available to
comment.

After the initial weakness at the
start of the year, GM appears to be making a base. The next level of
interest looks like the $40 1/2 level.

Click on the chart to see a larger image!!
Posted by Hello
I imagine there is no need to play until it clears resistance and
retests it from above.

Given the impact this story has had on credit spreads the end of the
story could have some broader positive implications. It also looks to
me like Fannie Mae (FNM) could be ready for a short-covering bounce
as it is very oversold and has not managed to get below the $60
level. I don't think it is worth playing as a long but a bounce
towards $66-68 wouldn't surprise me.