This position we are taking in IBM is a contingent buy (Through the long-term leaps going out to January of 2013). The chart I’m using is showing a closing price of 181.31, which is from yesterday’s close. This morning the stock opened up lower after news that the unemployment numbers are starting to climb again. This, combined with week economic numbers out of Germany, is causing fear to creep back into the market. This sell-off will give us a chance to get into the Leaps for a lower price but we will still need to wait for the stock to show a green candle before we buy in. In other words, we are not going to try and catch a “falling knife.”
Markets will be Closed Tomorrow
The markets will be closed for Thanksgiving and we will have a shortened trading day on Friday. I hope you will have the opportunity to celebrate this holiday with your friends and family members, being mindful of the fact that we all have a lot to be thankful for. Thank you for sticking with The Market Guys.
