consider that RIMM was down hard on ok volume on friday - if markets bounce, even a little on monday, RIMM will probably follow -and that would be a good thing for the "real" short setup that i think is yet to come.
red flags
- RIMM just seems to be too high and blackberries are boring - palm treos, blackjacks, motorola Qs and iPhones are where it's at. also, are we witnessing distribution up here? i am no expert on recognizing distribution, but we are seeing lots of share turnover without much upside to the stock. if not distribution, it could be consolidation, but there is something sketchy about this. also, notice the super-long term negative divergence between price and volume, at least for the spikes.
- the most recent big volume days are bearish
- failed breakout?
- is this longer term uptrend line break significant?
- finally, RIMM recently fell below th 50-day moving average on higher volume than when it more recently popped back up above it (sorry no chart)
- another test of the recent highs on low/pathetic volume
- break of the 50-day moving average since we are all the way up and it's not too far away (obviously)
3 comments:
Good post Walter, I'm definitely gonna be keeping an eye on RIMM.
Nice TA. We gotta be patient on these. The leaders will take the longest to roll over. In the meantime, dumb money will continue to buy this on any strength. Pretty soon dumb money will have no money left and it will be time to sell this sucker.
woodshedder - couldnt agree more - timing and dumb money critical
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