IBM Daily Analysis 1/1/2014

IBM Looking strong. It break out of the $172-$186 area yesterday. It broke through the down-ward resistance as well as Oct 14's high before the gap. Overall, I think we are cleared to go up to $194, which is the next major area of resistance (Sept high). I think the stock may consolidate a bit either before or after reaching $194, as it will have become overbought.

The second target is $198. I think we will get there in Feb.

Long IBM. Jan $180 Calls BTO 12/31/13.