IBM Update

As mentioned many times, I want to be selling in to strength, not chasing downside moves. There are enough stocks out there that if the one I'm looking at won't come to me, I'll simply move on to another. I've been cautious in building a longer term equity short position, trying to only pick up stocks that are moving in to strength and leaving my risk management wide enough to add, it's a good idea to leave the stops wide for another reason-market volatility.

 I was hoping IBM would move up yesterday, rather it created a hammer suggesting it has found some near term support with some gaps still open above.

 The higher gap seems like a stretch, but the lower gap maybe not such a stretch.

 IBM was one of many of the stocks I looked at last night with a positive divergence, leading me to believe we would open higher today, despite yesterday's seeming ugliness, this is another point about the market's insane volatility. The divergence still looks good today.

 The 2 min looks like a consolidation for the time being and IBM has done pretty much that today.

We have a bit of a leading divergence on the 15 min too with the last very negative divergence seen to the left, which sent IBM much lower.

I'll be setting price alerts for IBM in the gap areas and looking to possibly add IBM if we get the price strength it seems to want to exhibit and a negative divergence in to that price strength.