Stock Watch: IBM
July 22, 2008 12:01 AM
In “theory” if the market sells down, as is likely, IBM should reverse above either $119.90 or $116.60. There has never been a rejection of a high on this stock. I long ago mentioned that IBM was “likely” to eventually clear it’s high as it has never rejected a high. This is based on charts. Obviously, if they had warned the stock would be lower. News can and will destroy any chart. But they didn’t.
I am still VERY skeptical of the market here, to say the least. There should be an attempt to hold the line above the Dow low. If you believe the market will hold (I personally do not) then IBM should be long above those numbers. If the Dow low does not hold, then who knows. But IBM should fare better than most others if we do in fact clear the Dow low.
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