Short interest shifts point to a post-earnings rally for General Motors

Trading on General Motors Company (NYSE:GM) shows bullish signals as its stock price climbs and short interest decreases, according to S3 Partners.

The research team at S3 noted that historically, rising stock prices combined with decreasing short positions have correlated with positive returns after earnings announcements. In the case of General Motors (GM), the short position has been declining throughout the year, which is seen as further reinforcing the bullish outlook. S3 Partners noted that General Motors (GM) generally moves about 3.5% on earnings, and the implied move for the upcoming earnings report is expected to be positive.

The Seeking Alpha Quant Rating on General Motors (GM) is also very bullish. The quant score of 4.29 ranks second in the auto industry and 12th out of 496 consumer discretionary stocks. GM scored very high on valuation and profitability in the quantitative analysis check.

General Motors (GM) slipped 0.4% in Monday trading to $48.99 vs. the 52-week range of $26.30 to $50.50. Options trading implies a swing of 6% after the earnings report drops.