IBM update

IBM reported excellent earnings which took the stock up by about $9 or 5%. The results may have been good but not that good. So the peak is in or almost so. Here are the short and long-term charts again;

ibm july 19 2011 l ibm july 19 2011 s

See also previous blog. I reiterate that this stock is a sell.  Looking at the detailed chart on the right (click on it to enlarge) it has stayed within it’s channel for two years and more. Only today it “throws-over” if there is such a word. This typically is exhaustion move.

Looking at the long-term chart it is truly amazing what this stock has done (after 25 years of doing nothing). The count shown may or may not be correct but even so we are fast approaching the point where wave 5 is equal to wave 3 (at about $193???). This would be highly unusual especially for a non-commodity stock. Waves 3 may not be the shortest and mostly are the longest. Ergo in all likely hood the stock will not trade beyond that point. I certainly would not wait for it to get there.