Sunday, November 16, 2008

The WORLD isn't OVER!??! ~ International Business Machines Corp. (Public, NYSE:IBM)

The "double bottom" at $80ish? 

80.33
 -3.88
 (-4.61%) 


yes, we are actually "very bearish" on IBM.  Remember the $120 to $80 rule?  You know our acronym, International Bear Market, ... but this is a 4-day-max trade. expiration! 

GAME PLAN: 
Step 1 = BUY (IBM) common stock on the AM "dip", loose stop $76.40 
Step 2 = Leverage with the power of OPTIONS!  


OPTION LOVERS:
 ... try the NOV 80 calls!

IBMKP
3.39 -2.61 (-43.50%)
BID: $3.30
ASK: $3.50

Step 2 = Bid $3.00 

  CASH is KING! 

The SHORT BUS:  EEV, FXP, MON puts, MS puts

p.s.  as always, stubbornly LONG (HK) .... faith in Floyd!   $14 or $24 ?

6 comments:

outside day ... said...

The S&P 500 index, followed three days of decline with a -3.9% move down to new 52-week low territory early in the session, rallied in the later part of the day by 11.31% from the low to a 'big' 6.9% gain at the close at 911.29. Wow!

That's the largest rally off of the intra-day low in history. The second-highest such move from the low to the close occurred on October 28th, when the SPX rallied 11.27% from an intra-day low that was down just -0.43%. At table below lists all the previous occurrences of such moves greater than 8.0% in the SPX, the Dow Jones Industrial Average (DJIA_ACT) and the Nasdaq Composite (COMP).

So, the move was an epic one, and the pattern formed is an 'outside day' reversal pattern, where the low of the day is a new low, and the high of the day is higher than the previous day's high. It's also called a 'bullish reversal' pattern.

The low brought the index below the low it saw on October 10th. If it had closed below that level we'd be in a really bad technical position right now. But the rally of such magnitude opens up a whole new range of historical possibilities.

cl said...

maybe a few bear market rallies here and there, but the WORLD is in a recession...everytime a company misses estimates or gets downgraded the bear bite backs....smart money sells every rally ....

next rally Im buying puts and i'm not selling until 2009..... overtrading has been killing me... look at past transactions and see that I held deep OTM GS puts at 130 strike price...nobody has a crystal ball but anyone can practice patience....

in sum, we go lower

DMK said...

Why buy the stock and calls also??

Anonymous said...

What happened to the have you seen my ass ad? Always look forwarded to seeing that pic in the morning..

cl said...

"What happened to the have you seen my ass ad? Always look forwarded to seeing that pic in the morning.."

lol, same here...is BOTD becoming a family site now?

BUY ON THE DIP said...

bought $IBM on the DIP!!! 78.01 -2.32 (-2.89%)

stop in place, go team.