From a fundamental standpoint, IBM is a hard-to-beat choice for VLT Swing Trading as it has such an impressive pedigree and in the minds of many defines the very essence of the term blue chip. We see no reason to discount it as a viable choice for the LT investor and trader and deserves a place on the most traded list even though it has a relatively low beta.
Technically, IBM is in completely uncharted waters and the chart certainly has room for a sizable retrace in the coming year. We have identified the range in which many new shorts will be looking to enter a VLT Swing trade to the downside. Coupled with the fact that IBM has just reached an unprecedented 3rd target for such a long time-frame trade with the continued upward trend of the overall market, should make for some careful planning before committing to any sizable LT Swing shorts, in our opinion.
While maintaining a small cautious short by means of a mixture of leaps and OTM puts based on the LT chart level, we will trade short term long to capture upside swings until the picture becomes clearer.
Trade the chart and trade safe.