IBM ($178.55), stock is down about 2.65% on the year under-performing the SPX up 2.5% and the Nasdaq up 3.7%. The stock is actually down a bit since ORCL‘s miss and disappointing guidance given on Dec 20th.
-Technically the chart looks to be making a textbook head and shoulders top with the left shoulder formed in Nov, the Head formed in Dec when the stock made an all time high and then the final right shoulder formed and topped out on Jan 3rd. I guess the main point here is that since the stock gaped lower following their Q3 disappointment, 180 has served as significant support and now serves as the neckline of the head and shoulders formation.
I DONT HAVE A TRADE HERE BUT WOULD LIKE TO EXPRESS A BEARISH VIEW BASED ON THE COMPANY’S EXPOSURE TO EUROPE AND IT SPENDING. IF ORCL’S REPORT SHOWED US ANYTHING LAST MONTH IT IS THAT THERE IS A GOOD CHANCE THEIR WEAKNESS WAS NOT COMPANY SPECIFIC.
-IBM IS SCHEDULED TO REPORT THEIR Q4 ON JAN 19TH, I WILL LOOK TO SHORT ON A BOUNCE PRIOR, IF WE GET ONE.