Broken Charts, Bullish Analysts: How I’m Trading Data Center Stocks
The big data center names have strong revenue growth and demand that will last years, but is it time to buy?
Holding My Nose and Taking a Quantum Leap of Faith on IBM
It’s looking ugly out there for ‘Big Blue,’ but here’s why I’m not ready to bail just yet.
Adding to 3 Portfolio Holdings, Resetting 2 Checkpoint Levels
Meanwhile, the rebound in oil and gas prices lands 2 positions on our shopping radar.
IBM and the Market’s Mood: 8 Key Items Shaping the Stock Market Tuesday
Trump says we’re back at war, June CPI and Warsh on deck, bank earnings, and other headlines are moving stocks this morning.
Oil Falls to Pre-War Levels: 8 Key Items Shaping the Stock Market Thursday
Micron’s blowout earnings, May PCE, Bank dividend announcements, and other headlines are moving stocks this morning.
IBM Bucks the Bearish Trend — Why I’m in on This Quantum Computing Play
The reason is simple — and here’s the setup.
Conditions Are Ripe for Selling Into a Series of Major Events
A flood of events will soak up liquidity in exactly the sector that needs support.
Thinking Further on IBM
Yes, I’ve added to IBM ($IBM) on today’s weakness.
Readers will see that after falling out of bed late this past winter, the shares of IBM had developed a rectangle pattern with a $258 pivot over the following three-month period. The stock broke out of that pattern in response to the above news flow. In doing so, IBM took back its 21-day EMA, 50-day SMA and 200-day SMA.
Relative Strength is still quite robust but has now come off of a technically overbought level. Below the chart, the MACD now has a lot of bullish momentum, and is still postured in that way. Within that indicator, the histogram of the 9-day EMA is now well into bullish territory while the 12-day EMA is holding its ground above the 26-day EMA.
What if we strip away the rectangle? Take a look:
It’s a little lopsided, but IBM has developed a “cup with handle” pattern bearing a $331 pivot. This, in my opinion, refreshes the bullish setup for this stock.
International Business Machines (IBM)
Price Target: $397 (up from $337)
Pivot: $331
Add: Down to 200-day SMA (Currently $272)
Panic: Loss of that 200-day line.
Position: Long IBM equity
Quantum Computing Stocks Hit Hard
Quantum computing stocks sold off hard on Wednesday ahead of the Quantinuum IPO at the Nasdaq Market Site on Thursday. Quantinuum, which is majority owned by Honeywell ($HON), will officially begin trading later today under the ticker symbol “QNT.”
On Wednesday, Infleqtion ($INFQ) gave up 12.4%, Rigetti Computing ($RGTI) gave back 10.4%, and D-Wave Quantum ($QBTS) surrendered 7.9%. Even the mighty IBM ($IBM) lost 7.2%.
Last night, Quantinuum announced that it has raised $1.68 billion in its initial public offering after pricing 28 million shares at $60 apiece.
I will be adding to my long position in IBM (still up 31.6%) at some point this morning.
Positions: Long IBM equity.
Morgan Stanley Sends AI Trade Warning: Stop Buying
I’m enjoying the aggressive speculative trading, but growing worried about some upcoming catalysts and toppy technical action.