Thursday, December 28, 2006

Short Stop

I'm short IBM as of right now holding Puts. I have a stop in place, just in case IBM blows through the 52 week high of $97.40. It closed near it's low of the day, and could resume on more weakness. It's had a nice run since $83, and has been firmly in an uptrend after it's stellar earnings report on October 18th, 2006.

I can't explain it, but I'm starting to lean towards the bearish side....we've had this huge run up, barely any profit taking days, and there's just something that has to give. The S & P 500 is sitting at the top of it's channel, compliments of Trader TIM. As you can see from the graph, there is always a pullback, nothing goes up forever, only taxes...oh yea, and the price of marriage.

I'm just looking for some awaited profit taking until we resume our uptrend for 2007 if we even do. I'll be watching the S&P 500 closely for a swing short via Futures Indexes. There could quite possibly be an extreme amount of money to be made on this pull back...Futures provide the leverage needed to pull off such a task, and I'll be on the side with the large numbers of green.

Let's be sure to take notice of Apple's Official Filing this Friday about it's option practices and more information. There is certainly something very fishy going on, as it seems they're trying to alleviate all of the bad news before MAC World, and the possible release of the "iPhone" ? Apple releases it's earnings on January 17th, 2007.

Trade of Interest: Check out Day Trade Teams AKAM Analysis and further watch it's movement for possible leap forward after touching down on support. Great Call.


Jim K said...

that looks like a pretty good wager. 97 has been was a major double top in '04... good luck.

Jim K said...

incidentally at my blog, i've been talking quite a bit about a number of red flags.. everything from low vix, weak qqqq, weak transports, breakdowns in various stocks... dogs and cats sleeping together... i think we're in for some rough sledding in the new year, though i stil wouldn't rule out one more blow off rally attempt... there's a lot of liquidity out there, and that's a post which I still have to make... it is dangerous to underestimate what the fed has been doing and hard to figure it out with M3. but i think there are some warning signs out there and a lot of stocks, like IBM are clearly looking liek they are topping out. sorry for the shameless self promotion.