General Motors Co. (NYSE: GM) has seen its shares surge ahead of Thursday’s release of the internal findings from the company’s recall process. It was recently shown that GM was a top hedge fund stock holding, as funds were chasing a serious buying opportunity based on the sell-off.

Now it seems as though that the reaction is expected to be that GM has gone above what could have been expected from it. That seems hard to believe, and it is nearly hard to say.

If you ask how this can be the case when GM’s failure seems so obvious and still resulted in deaths and injuries, the move may speak for itself. GM shares were up more than 4.5% at $36.89 around 1:30 p.m. EST on Wednesday, and the average trading volume of 20 million shares per day had already been hit with some three hours to go until the closing bell.

GM shares are hitting highs not seen since the first half of March. Now consider that GM shares are still down from a post-IPO and 52-week high of $41.85. Another issue to consider is that most analysts did predict that this pullback was an opportunity. Even after all the negative news, the consensus analyst price target is up at almost $44 — plus GM now yields 3.5% for its dividend.

Another significant issue here is that GM’s chart just broke back above its 200-day moving average on Wednesday. That level is at $36.15. Its 50-day moving average is far lower at $34.30.

The last issue is that options trading is very elevated in the June and July call options.

The market is trying to say something here. It may be that GM is going to get through this fiasco — and maybe somewhat unscathed.

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