Market Overview

Is IBM Showing Wider Market Problems?

Yesterday, the markets surged higher, gaining almost 1% across the board. While the markets were strong, International Business Machines Corp. (NYSE: IBM) fell. Today again, the market is flat to positive but IBM is trading at $200.84, -1.10 (-0.54%). So why is IBM falling when the market is so strong? Is it speaking to a wider issue in the market?



Just two weeks ago, IBM reported solid earnings. The stock jumped from $194.47 to a high of 208.58. Since that point, it has given back over 50% of those gains. Is it possible the global presence of  IBM is showing us major problems still in Europe and China? As a general rule, watch the leaders in the Dow Jones Industrial Average like IBM as well as JPMorgan Chase & Co. (NYSE: JPM). Also watch the leaders in the S&P 500 and the NASDAQ. They will show the weakness prior to the market pulling back.



Gareth Soloway

InTheMoneyStocks



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