Monday, August 30, 2010

IBM View

A clean unobstructed 20 year view of IBM on a monthly basis. Please note the $120 high water mark made during the hey days of the dot com bubble.

Do you know how many technicians bought the move up thru that old high of $120 during first week of May 2008 and then yet again in mid July of the same year only to see the stock get absolutely crushed.

Lets take a look see at IBM now on a closer weekly view.

The move up off the lows of 2008 took out the tech bubble high of $120 and the 2008 highs of basically $125. This thing should have taken off like a rocket.

Why has the stock not accelerated?
Is there something wrong under the hood so to speak?
These numbers 120 and 125 are multi-month and multi-year highs and are significant benchmarks.

So what gives?

Wall St. like to promulgate the buy and hold strategy everywhere and always. Cash as an asset class pays them no fees, I repeat, cash as an investment decision pays them nothing, ergo they have no way to cover their monthly nut, ie. membership dues, alimony, Amex bill which is an untenable situation.

So, could just the opposite be the case going forward? That being a strategy of sell and hold? Something one might consider but as always consult with your investment advisor before making any financial decision, most especially as to it's suitability to said advisers standing within their firms monthly production ranking and grid as well.

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $266.50

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