$Sherwin Williams(SHW.US) and $IBM(IBM.US) both rose by five to eight points, with two legacy blue-chip stocks being bought up by the same batch of capital.
Coatings and enterprise IT are completely unrelated; the reason they moved in the same direction is due to capital flows rather than business fundamentals—the money withdrawn from high-valuation growth stocks needs a landing spot with stable cash flow and reasonable valuations. $Sherwin Williams(SHW.US) has already reached the 95% level of its 20-day range, while $IBM(IBM.US)'s RSI is only at 23, placing it at the 25% level.
One is rising at a high level, while the other is bouncing back from a deep pit; behind the same magnitude of gains lie two completely different holding experiences 😀 The rebound of $IBM(IBM.US) at this position is more likely to be seen as an opportunity, but also more likely to be merely an oversold technical repair.
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