IBM is selling off in high volume, and is under its 10 week line. Technically, this is not a good sign for the longs. I would bet IBM is going lower.
Perhaps it is profit taking after a really strong year? Maybe, investors do not like the recent purchases? I doubt it! There is growing concerns regarding their earnings as they have exposure to Europe. I will just hold through the market ups and downs. good luck to all...
I do believe that IBM's European biz will be ok. IBM has a large component of recurring revenue in Europe and IBM has the large firms & Governments as customers. While European budgets are tightening IBM's projects are intended to save money. This is why IBM came thru 2009 with a double digit EPS gain -- Europe was down then too.
If I had held the IBM shares I reacquired in 2009 my pile would be much bigger now.
Keep in mind that if the Euro falls significantly against the dollar as some are predicting, those recurring Euro revenues will be a lot less dollars.
IBM was overbought on the daily, weekly and monthly charts. If it doesn't hold the uptrend line (near where it is now around 183) - and I don't think it will - then I'd guess it's headed to 176. If that doesn't hold, then the 194.90 might be the high for a long time.