IBM has a strong seasonal tendency to rally at this time of year, with money flow showing large traders/professionals buying IBM. Over 20-30 years it has rallied then a little over 70% of the time, though not perfect: 2023 rallied late, 2019 did not, 2016 was perfect. Could buy a call, write a put, or be outright long.
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Here's a couple that I like. We're looking at IBM right now. The blue line is a seasonal pattern for IBM. You can see IBM usually starts to rally up this time of the year. That's a positive thing.
We can also look at money flow index. This is when the large traders have been buying the market. You can see what happens when they've bought the markets led to rallies. Bought the market led to a rally.
Well, they've been buying in the market. So, we have a unique combination here. a seasonal tendency to rally and smart money or professionals been buying IBM that's positive.
So I then like to bring in my cyclical analysis. I'm using timing solutions for this. And this is the cyclical wave that IBM is in right here right now. It should start to rally in fact 72% of the time going way back in 19 in IBM 20 30 years.
It has rallied at this time of the year with a little over 70% probability of a rally.
Is it perfect? No. You can see the last time was 2023. The low came a little bit later. But yes, we got the rally. We look before in 2019 there was a rally time didn't rally and 2016 all out that was just a perfect one.
So we don't know if we get the perfect one this year or we get one like this but we know there's a strong seasonal tendency for IBM to rally.
In fact I first wrote about this over 30 years ago that IBM usually rallies at this time of the year. So how do you address that? Uh I'm not a put call guy. It's a little bit over my head, but you could buy a call, you could write a put, or you could just be outright long the stock.