Like I’ve said before, don’t listen to news on the internet or someone with a suit and tie in front of a TV. Well, yesterday, I saw an article about IBM being a “value trap”. Stupid article. Value traps are companies that appear cheap but they’re cheap because they’re really crappy companies and are not likely to appreciate in value.
Of course, when did they write the article? After a period of IBM being down overall for a number of years and coming off of a wave 2 on its daily chart. The writer of the article became a part of the sentiment of wave 2’s and obviously didn’t bother to check-out IBM’s fundamentals OR just went with how they felt about it becuause it hadn’t been a high flyer in the most recent years (even though we’ve made good money on it every time we’ve been in it, due to the pickiness and ways of my system).
Meanwhile, IBM continues to perk up more. We’re already profitable on it in the short-run, but it will really zip once it solidly gets above that red resistance zone in the $132-$133ish area.