Is The Big Blue Sea The Place To Be? Stock Symbol: IBM

International Business Machines Corporation
1 New Orchard Road
Armonk, NY 10504
United States – Map
Phone: 914-499-1900


Back in October of 2014, IBM announced they were restructuring to adapt to the world of cloud computing.  Investors responded by selling it down to 2011 levels.  This wasn’t great for Warren Buffet (who lost around a billion dollars in book value), however those who held and bought another $400 million worth in the 1st quarter of this year:


IBM Chart June 2014

As you can see, IBM pulled back a bit to its pre breakout levels of 165<.  However, because the market did this at the same time, and we are in a “Pushers” market (low volatility means pushers time horizons expand), we are not that worried.  That being said, IBM have been a bit of a headache on the intra day trading side, possibly due to HFT software, so be careful if that’s your game.

Like Buffet, we feel IBM is a good long term hold.  We were buyers when it crossed 165 the first time, and we’d be holders here if we were long.  We expect the stock to hit 180 before it hits 160 and also expect all time highs before 52 week lows.  Of course the overall market with be a major factor, but we feel the same way about it.  Regardless of the fact it probably needs a healthy pullback.

Remember.  A high frequency trading profit, we don’t give advice.  We just point out opportunities.


Trade well my friends.


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