It's an ok entry if you trade retracements, which come with smaller reward / risk ratios. I'd suggest to close this trade (now for a small profit), and wait for IBM to bounce down from just above / around $79.5, then trade with the trend (that now for swing trading seems to be pointed downwards).
FWIW, the 80 line calendar trade has been profitable the past 6 months or so. I will continue to sell nearby 80's until price action shows otherwise.
========== JRL; Like the price improvement & the stop; would probably even stop it @76.50 area, swing trade. And while Dow theory/DIA is in your favor; SPY QQQQ ,IBM are below 50dma. , below 200dma, oops. Hope it doesnt gap below stop; with downtrending market 79.55 or so ,would be fine profit also
Quote from nitro: IBM's price will double in the next 3 years. nitro >> Probably most confident that in 3 years no one will remember the call. If it comes to pass you will be reminded. Old carnival trick.
Thanks for all you views on this trade. I did close out the postition for a very small gain. I forgot the most important rule. Trade with the trend. Was my first day with IB and was trigger happy. Glad it wasn't a expensive lesson. Hopefully I'll have a better trade to post next week. Enjoy the weekend everyone
stock formed head and shoulders earlier this year and finally breaking down below neckline. buying stock was not a good trade. glad u got out with profit. lucky.