IBM Accounts For The Entire Upward Move In Dow Jones Index Today

Tyler Durden's picture




 

Wondering why with the S&P and Nasdaq both down, the DJIA is up 60 points? Wonder no more: courtesy of a few strategic index-weighing calculations, IBM is responsible for 59.4 DJIA points, or virtually the entire up move in the most popular stock index. One company, the one which Warren Buffett so strategically picked last year to invest in, now biases the entire market to make it seem that "all is fine."

Chart: Bloomberg

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Fri, 01/20/2012 - 14:17 | 2081637 catacl1sm
catacl1sm's picture

Fuck me. We're on the edge now, bitchez.

Fri, 01/20/2012 - 14:38 | 2081738 trav7777
trav7777's picture

silver is up a buck, can't you mfers be HAPPY for once???

Fri, 01/20/2012 - 14:42 | 2081758 Kaiser Sousa
Kaiser Sousa's picture

up a buck and still $500 below where it should b n debt coupon dollars...

dont trip on us...we know when its time to "dont worry...be happy"...

Fri, 01/20/2012 - 15:55 | 2082073 tocointhephrase
tocointhephrase's picture

Bottoms up Trav (take it how ya like, lmfao, muwuhaha)

Fri, 01/20/2012 - 14:16 | 2081639 monopoly
monopoly's picture

Thanks Tyler. i thought something like IBM might be the reason. Lots of red on my screens and the green is just boring.

Fri, 01/20/2012 - 14:23 | 2081667 Cognitive Dissonance
Cognitive Dissonance's picture

The market ramp has been reduced to individual issues. Soon it will crest and the swift down leg begins. Hold on tight boys and girls.

Fri, 01/20/2012 - 14:38 | 2081735 Vaiman
Vaiman's picture

Yes thanks Tyler!  I've been wondering what the heck is going on.  Yes...I agree...hang on to your tights boys and girls!

Fri, 01/20/2012 - 16:10 | 2082129 lotsoffun
lotsoffun's picture

cd - good point.  i think you're right.  BAC started ramping 2 weeks ago for uncle warren and pulled the whole sector up on crappy earnings and lower revenue (inspite of all the news that the sector was lowering bonuses).  and i saw the IBM play by warren very clearly when that one came up, because it was the easiest way to ramp the DOW.  those couple of individual plays are right now 'bennie - at least get me out now flat!!'.  come to think of it - anybody seen jon corzine lately?  or timmie?  very low profiles.

 

Fri, 01/20/2012 - 16:36 | 2082229 Vaiman
Vaiman's picture

Toyota is running up hard also....major gap up today after a run up yesterday.  I'm buying my Feb puts ready for the gap fill.  I'm quite sure the bulls are running on borrowed time.  Not sure what else the spin doctors can use to keep this upward momentum going.  When the institutions decide it's time to massively short this then look out below!

Fri, 01/20/2012 - 14:26 | 2081674 Hansel
Hansel's picture

As the highest priced stock in a price-weighted index, IBM is the go to stock for manipulating the Dow, and therefore too big to fail.

Fri, 01/20/2012 - 15:04 | 2081815 hedgeless_horseman
hedgeless_horseman's picture

 

 

IBM?  I think the last time I personally saw an IBM computer was about the same time I personally saw a roll of Kodak film.  Are they still in business?  If so, making what? 

Were not AIG, GM, and Kodak all DJIA components, too?

Fri, 01/20/2012 - 15:11 | 2081877 ragequit
ragequit's picture

Your ignorance of IBM's core business and its lack of consumer level products doesn't mean the company isn't profitable.

Fri, 01/20/2012 - 15:36 | 2081989 orangedrinkandchips
orangedrinkandchips's picture

how funny, when I was in college we had the 'dorms of the future' which had a pc in every room..(and I just turned 40)...green screens...shit..all we did with them was play tetris!!

 

IBM sold their Lenovo pc business but their consulting business is what keeps em going....

 

 

Fri, 01/20/2012 - 16:05 | 2082109 lotsoffun
lotsoffun's picture

aig, gm and kodak were all wonderful american corporations.  they still are.  infact, our government still owns large amounts of aig and gm.  and let's not forget the big C - citibank

 

 

 

Fri, 01/20/2012 - 14:30 | 2081695 clones2
clones2's picture

Awesome "screen"... Anywhere to get this particular screenshot other than Bloomberg? ie. free?

Haven't seen leaders/laggers broken down into the impact on the index before.

Sat, 01/21/2012 - 14:05 | 2084368 RiverRoad
RiverRoad's picture

Keep watching those screens:  This is how Buffet takes the market up just before the election.

Fri, 01/20/2012 - 14:18 | 2081641 GeneMarchbanks
GeneMarchbanks's picture

Plus they were a fine contributor to the Holocaust.

http://www.amazon.com/IBM-Holocaust-Strategic-Alliance-Corporation/dp/09...

Fri, 01/20/2012 - 15:05 | 2081685 Hansel
Hansel's picture

I highly recommend this talk, along the same lines: How governments have tried to block Tor - Youtube.

Smartfilter -> Secure Computing -> McAfee -> Intel

Intel is providing the censorship tools for places like Tunisia, and lots of other dictatorial countries.  Boeing, Vodafone, and Cisco do too.

Fri, 01/20/2012 - 15:58 | 2082077 tocointhephrase
tocointhephrase's picture

Long live ZH!

Fri, 01/20/2012 - 18:18 | 2082582 piceridu
piceridu's picture

Absolutely fancinating video Hansel...thanks for the hook up!

Sat, 01/21/2012 - 17:21 | 2084951 FrY10cK
FrY10cK's picture

I'm a lurker who's always been a little uncertain about the signal-to-noise ratio here at ZH. That video keeps me interested. Thanks for the link.

Fri, 01/20/2012 - 14:18 | 2081645 catacl1sm
catacl1sm's picture

OT: WTF is up with Silver and Oil today??? Seems backwards considering the stealth QE via FX Swap.

Fri, 01/20/2012 - 14:19 | 2081651 CvlDobd
CvlDobd's picture

I was gonna say. I haven't read silver bitchez anywhere today.

What's up with that?

Fri, 01/20/2012 - 14:23 | 2081666 GeneMarchbanks
GeneMarchbanks's picture

That can only be bullish IMO. I see "Silver, bitchez" my first thought is sell...

Fri, 01/20/2012 - 14:26 | 2081679 CvlDobd
CvlDobd's picture

I agree my friend.

Fri, 01/20/2012 - 16:07 | 2082093 tocointhephrase
tocointhephrase's picture

 Backwardation might explain your backward thinking in Silver in Oil some call it "peak" as in "Peak Oil" but it is not my place to comment. It looks like a sea of paper out there. You might want to think about building an ark!

Fri, 01/20/2012 - 14:18 | 2081648 orangedrinkandchips
orangedrinkandchips's picture

two words...

 

WARREN BUFFET.

 

period.

Fri, 01/20/2012 - 14:20 | 2081653 surfwon
surfwon's picture

Warren the Baffoon

Fri, 01/20/2012 - 14:32 | 2081662 Fidel Sarcastro
Fidel Sarcastro's picture

The Old Coger of Omaha.

Fri, 01/20/2012 - 14:21 | 2081654 Cdad
Cdad's picture

 Bingo!  This session today is sooooooo bullshit.  If you are watching individual equity positions, there are sellers all over the market.  Hard to imagine how this session does not end without the VIX reasserting itself, and the rotation from the marked up XIV to the marked down VIXY is quite clear on this matter.

IBM and XLF reversals will dictate the turn.

What an utterly shattered market structure.  Way to go Wall Street!

Fri, 01/20/2012 - 14:24 | 2081669 slaughterer
slaughterer's picture

Two words: January expiration.  

XLF has looked like it is about to break out ever since noon.

There is alot of ETF HFT going on in last two days to support this dying rally.  

Fri, 01/20/2012 - 14:33 | 2081710 Cdad
Cdad's picture

Deep ITM call selling all week on the things I watch...confirms.

Fri, 01/20/2012 - 15:59 | 2082079 lotsoffun
lotsoffun's picture

vix is going nowhere because anybody that has had shorts for the last 2 years has learned they will be crushed.

bernake will not allow short selling.

 

 

Fri, 01/20/2012 - 14:21 | 2081655 Fidel Sarcastro
Fidel Sarcastro's picture

But it is "all fine" right?  After all, the central banking mafia has it rigged to do its bidding now & forever.  

Fri, 01/20/2012 - 14:21 | 2081656 SheepDog-One
SheepDog-One's picture

Well cant have the DOW down, not even for 2 minutes! Someone might want to sell 2 shares of stock on the open market and completely implode the whole system! Gee the desperation clings like shit to the air.

These people are idiots, theyre stuck now and should let the markets drop....they give themselves NO wiggle room at all! What are we supposed to believe, that the DOW now levitates 60 points daily till year end? This all is just RETARDED!

Fri, 01/20/2012 - 14:32 | 2081699 Cdad
Cdad's picture

Who is really stuck...is BlackRock.  These guys are choking on equity positions and bad bonds...here at the top.  BLK will be the best short of this year, I believe.  Almost there...

Fri, 01/20/2012 - 14:22 | 2081660 Dr. Engali
Dr. Engali's picture

Diversification. :>

Fri, 01/20/2012 - 14:22 | 2081663 prains
prains's picture

creamy thighs

Fri, 01/20/2012 - 14:25 | 2081665 falak pema
falak pema's picture

one nutted index, like a one nutted empire. Lose that nut and the meccano starts coming apart. Its getting more and more dicy to keep this meccano working like a well oiled, no grain of sand here machine. 

Is IBM on a perennial hi-rise plateau, that defies a down turn? I know hi-tech is still the lead sector. But, but, but, no company is a law unto itself, even Apple is prone to a stumble. When you are that big any consumer shrinkage has immediate effect on the upward curve. Can Apple continue to be the  15-20%/yr growth company?

Fri, 01/20/2012 - 14:26 | 2081677 slaughterer
slaughterer's picture

In a word: no.  Not without something new that is spectacular (iPad 3 does not cut it, nor does iPhone 4s)

Fri, 01/20/2012 - 14:26 | 2081673 The Axe
The Axe's picture

sorry....more ramping coming     msft and intc   coming hard...

Fri, 01/20/2012 - 15:56 | 2082069 lotsoffun
lotsoffun's picture

"Berkshire's purchases in those other tech companies were far more modest than its bet on IBM. It bought 9.3 million shares of Intel and 4.2 million shares of DirecTV. Still they were unusual investments for Buffett, who has typically avoided tech stocks."

 

Fri, 01/20/2012 - 14:29 | 2081691 Dr. Engali
Dr. Engali's picture

Interesting market today. One stock carrying the DOW, ten year treasury selling off ,oil selling off, gold and silver up. Strange.

Fri, 01/20/2012 - 14:47 | 2081780 slaughterer
slaughterer's picture

I bought oil on the dip.  Iran premium coming back.  

Fri, 01/20/2012 - 15:02 | 2081839 Zero Govt
Zero Govt's picture

every asset class has its cycles... expecting everything to act in perfect unison in not going to happen on a daily basis

Fri, 01/20/2012 - 15:54 | 2082065 Dr. Engali
Dr. Engali's picture

Thanks. After 20+ years in the business I never would have known that.

Fri, 01/20/2012 - 15:59 | 2082084 Zero Govt
Zero Govt's picture

"Strange" 

Fri, 01/20/2012 - 17:30 | 2082431 Dr. Engali
Dr. Engali's picture

That was because lately everything has been moving with a correlation of one.

Fri, 01/20/2012 - 14:32 | 2081692 Zero Govt
Zero Govt's picture

IBM is toast

it is no longer B2C (consumer) but B2G (Govt) including some of the most mind-numbingly dumb technologies known to man (eg. traffic lights, congestion charging zones etc)

When Govt implodes (like Govt propped-up trains) IBM will go down the sewer with them ....oh look, Warren Buffet's attached...oh well, Ciao Chumps  

Fri, 01/20/2012 - 14:49 | 2081786 slaughterer
slaughterer's picture

I do not even know what IBM makes any more, nor does my business use any of their products.  

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