Rust on the Relics

After reporting a decline in U.S. vehicle sales in July, shares of Ford are down 4% as I write this. 

Along with our analysis of DIS NKE SBUX UA, the price action in F and GM regarding moderate-to-big ticket items for consumers has been concerning for a while now, seemingly masked by the strength in software, medical devices, and select leaders like AMZN FB GOOGL. 

But it is tough to hide the weakness this morning, with the glaring weakness in both Ford and GM. 

On the General Motors weekly chart, below, note the the light blue lines pointing to a descending triangle breakdown. Context is important, and both Ford and GM have been lackluster for years now, which makes the selling here not simply an isolated event which bulls can explain away as an overreaction. 

Tesla has earnings tomorrow after the bell. So it will be interesting to see if they truly are eating F GM. But, either way, there is a considerable amount of rust these days on the American relics of capitalism.

I am looking GM as a short idea below $30.