019. PIGGISH PLAY - Short IBM's Mediocre EarningsIBM is so... so.
What I mean to say is that IBM is the epitome of mediocrity. The stock price ebbs and flows with the zeitgeist of the overall market. Seeing how this stock has paved its way into a well-established, clear downtrend, the play is rather straightforward given the in-line status update last night:
1) When you see yellow flames, they either:
i) diverge into green flames and move to the top trendline, or,
ii) diverge into orange flames --> red flames and down to the bottom trendline
2) Given their unsurprising mediocre report yesterday, I'd bet the farm that its the latter this time around
3) If using equity, enter on the open, set stops and limits according to the chart's annotations
4) If using puts, I recommend entering 120 strikes (10/30 expiration) and holding until ~105-110 for a solid premium flip
Today's market is primed for shorting the mediocre companies because of the fearful/bearish undertone established yesterday.
IBM is just the tip of the average iceberg, yet it will slip and slide just as well.
- So-So Pig
NYSE:IBM
SPCFD:SPX
NASDAQ:NDX
