by Houghton and Atkeson 09/23/08
One would think helping companies store and discard document safely would hold up pretty well in a slowing economy, but the stock of Iron Mountain (IRM) is down 30% year-to-date, almost two times worse than the averages. Maybe having Warren Buffett reduce his position is adding fuel to the fire.
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This morning, Iron Mountain options have traded 43 times usual volume and 30% of open interest. In particular, market participants have traded 3,000 IRM Jan 25 Puts (IRMME) and Jan 20 Puts (ZIYMD) in what looks like a put spread.
The stock has bounced off the $24 level three times this year, and maybe the fourth time won't be the charm.
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Sam Collins
Day after day, we've been besieged with how bad the economy really is and, yet, stocks keep plodding their way higher.
Let's not get caught up in bullish fever unless Dow 9,600 and S&P 1,010 are broken with gusto.
CAT has broken through the neckline of a major 'W' bottom and emerged with a new trading target.
The market may have enough strength to challenge huge resistance lines on the DJI and the SPX but not enough to change the intermediate trend from down to up.
Will Santa Stop at Wall Street?
Not likely. The stochastic of the major indices has issued a double sell signal, which could indicate a serious attack on the market's lows is about to occur.
