Since Feb 27 we recommended stepping aside to see where it would go. Clearly it is making the correction larger than before and is going for the 61.8% retracement level at about $106

I realize that Bill Carrigan likes the stock, as per the Star report d.d. April 11 titled “Shares of multinationals offer profit, protection”. I do not understand where from he draws that conclusion as the stock lost 50% in 3-4 months, hardly blue chip behavior. In the article he also refers to one of the 4 bears, as in the “Night with the Bears” as  a “lunatic fringe” presumable for believing in the Kondratiev long-wave cycle. Which, by the way, was first discovered in 1913  by Jacob van Gelderen , a very sane Dutchman.

A month ago to the day I posted IBM as a sell, showing both the big picture and the more detailed one. The stock was at $94 and ripe to top out (to retrieve previous stuff just put the ticker in the search engine at the top) which it did a few dollars higher. The pattern from $70 to $97 is VERY clearly corrective implying that some day we should be trading at a new low. Time to step aside if not already done.

IBM appears to have made a “flat” right under the top and double top. The typical signature of this pattern is an A-B-C with both they A and the B made up of an a-b-c and the C a simple 5-wave structure. Often the C=A at least as a factor, however near the top the C can easily become much larger. Alternatively the second top could be construed as a 5th failed wave. In the big scheme of things either interpretation is bearish even if another $5 up cannot be excluded.

This is a big picture sell.