We want to enter short positions at the market in IBM and BMY.
IBM continues to make lower highs and we think that last weeks rally was a correction of the recent decline from $157. We would enter a short position at the opening of Tuesday’s trading. We expect the downtrend to continue and would use a buy stop at $156.76 on the short position.
We also would enter a short in BMY at the market on Tuesday’s opening. Recent action we feel was a 50% corrective rally of the recent decline, and now we can resume the recent downtrend. Use a buy stop at $63.39.