The Big Skew by Big Blue

On those trading days when IBM, or “Big Blue,” the very heavily-weighted Dow component, makes a large price move but the rest of the market is not quite in sync with it, we often see bizarre skews among the major averages. This morning, indeed, appears to be presaging one of those session, with Big Blue down hard, over 7%, while some major averages are green.

I am likely to wipe my portfolio down today, as I sense the market is at a major crossroads this week as to whether the follow the 2013 playbook for the automatic recovery from any apparent technical damage, or instead embark on a fresh, corrective leg lower. I am still thinking the latter, but newfound shorts may be in for some pain first.

NLNK is a hot biotech this morning and worth keeping on the radar as a day-trade on strength.

I will be back in a bit with a long-term chart of Big Blue.