IBM Aftermath
IBM Aftermath IBM opened yesterday at 90 1/8, down 22 15/16 (20%) from Thursday’s high of 113 1/16, on 5.7 million shares–the penalty for their surprise. Many of the major techs sold off in sympathy; some, including MSFT, INTC and ORCL went positive late in the day, as did the QQQs. That was pretty good action. IBM presented an excellent trading opportunity on the opening, as it ran to 92 7/8.
The Internets acted well, with AOL hitting a three-month high. The Internet software stocks also did well, up 12 to 38 points, which you saw on TradehardNews.com.
| Several drug stocks, led by Merck, continue to benefit from funds fleeing the techs |
The Turk got the S&P futures positive at 3:50 PM ET (gotta love the Turk); the SPYs and QQQs went positive as well. The S&P futures rallied 20 points from a low of 1272.50 to 1292.50 by day’s end. The Dow finished the session down 95 points, and IBM was down the equivalent of 110 Dow points. The up-down volume ratio was negative, biased by the tech selling, and the overall breadth was negative, -777 declines over advances.
The S&P index is bumping up against the 200-day exponential moving average (EMA) at 1290 and below the 50-day EMA at 1310, so it will probably take real buying by the institutions–no just program games–to move above these levels.
Target Stocks Of The Day You have to stay with the Internets when the momentum is there. Watch America Online [AOL>AOL], CMGI [CMGI>CMGI], Yahoo [YHOO>YHOO] and Lycos [LCOS>LCOS].
| Program Trading Numbers | ||
| Buy | Sell | Fair Value |
| 10.00 | 6.60 | 8.30 |
If you want to learn more about Kevin Haggerty’s trading strategies, click on the link below to go to his series of tutorial articles.