Big Blue

by Larry Levin


Big Blue (IBM for the non-informed) came to Mr. Market’s rescue today. Its strong 5.4% rally propelled the Dow to a triple digit gain. Something was needed to get the market off its back, but I wonder how long it will last? Some analysts wonder as well.

"The million-dollar debate remains [whether] 2008 tech trends weakening, and if so by how much," said Louis Miscioscia of Cowen & Co. "While it's impressive that IBM's quarter did hit and overachieve our and the Street's estimates, we maintain our neutral rating at this time, given the uncertainties for 2008 with respect to tech spending."

The surprisingly good news from IBM couldn’t be offset by Sears, which was slightly less than impressive. Sears Holdings Corp. shares fell sharply today after it warned that fourth-quarter earnings per share may fall as much as 51% from last year's levels. At the close, SHLD fell 4.98% and is down another 1.43% in the aftermarket. Today’s drop marks a hefty -53.8% fall from the high. Downgrades came from Credit Suisse and Goldman Sachs, who cut the stock to sell. Wow, it takes a near 54% fall to recommend a non-buy?

Tomorrow’s economic data should provide some fireworks.

Real Time Trading Signals*for

Trade Date: 1/14/08

E-Mini S&P Trades*
(before fees and commissions):




9:34 ID VA Sell 17.50 = +.75, b/e

9:42 VA Buy 6.50 = -1.50 all

9:58 VA Sell 6.50 = -1.50 all

10:18 VA Buy 7.25 = -1.00, -.75

10:30 Otf Buy 5.75 - +.75, b/e

1:12 VA Buy 6.75 = +.75, +2.75, +4.50

2:18 Ft Buy 19.75 = -1.50 all

2:31 ID VA Buy = +.75, +2.00

E-Mini Russell Trades*
(before fees and commissions):


1) Buy @ 8:47am at 709.1 = +.5 & +.8

2) Buy @ 8:58am at 710.0 = -1.2 & -1.2

3) Buy @ 9:15am at 710.4 = +.5, +1.2, +.4

4) Buy @ 9:36am at 711.8 = +.5 (1 lot)

5) Buy @ 9:39am at 711.6 = +.4 & -.5

6) Sell @ 9:44am at 711.5 = -.5 & -1.1

7) Sell @ 9:57am at 711.6 = -.3 & -1.2

8) Buy @ 10:32am at 711.8 = b/e (1 lot)

9) Sell @ 10:52am at 712.0 = +1.5 (1 lot)

10) Sell @ 12:09pm at 711.1 = +.5 & +1.8

11) Sell @ 12:32pm at 710.3 = +.5 & -1.0

12) Buy @ 1:02pm at 713.0 = +.5 & -1.2

13) Buy @ 1:42pm at 715.6 = -.1 & -1.3

14) Buy @ 2:04pm at 715.8 = +.5 & -.9

15) Sell @ 2:30pm at 714.4 = +1.0 (1 lot)

16) Buy @ 2:46pm at 715.4 = b/e (1 lot)

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