Market Analysis:
Flat day yesterday but to be expected after the huge run we had WED. After doing some DD, it looks like we may be going through what is called sector rotation. AG and commodites have been on fire lately, and are way overextended. Doomsters should swallow the fact that financial and tech may take its seasonal role to move the market much higher. BEING SHORT FINANCIAL OR TECH TRADES IS NO LONGER EN FUEGO. What we are seeing right now might be money flowing back into the financial/tech. So this is GOOD NEWS for RIMM longs: RIMM looking VERY bullish for today with the GOOG homerun yesterday, folks. Expect a strong move. RIMM LONGS WILL HAVE A MONSTER OPEN TODAY. Never forget to keep an eye on the broader markets intraday. Easy to get "RIMM-notized" and lose broader perspective. Also a lot of other juicy opps in play right now. Congrats to those who caught the EBAY earnings short. Cut my RIMM options pain in half. Focus on profits, only losers get fixated on losses. Losses are part of the game if you are a serious trader. If you are not willing to lose $3 in order to profit $8 then this game is NOT for you. End of month P&L is all that matters. Winners learn from EVERY trade and just get better and better. Losers just hope, hope, and hope the new day will somehow things around for them. This game is tough enough to bank coin, let alone having pikers put a bug in your ear on the boards. Shorts, I wish I had something positive to say, but they WILL take this market up higher short term. Put out your pride and don't argue semantics, this is an irrational Bear market. We just happened to be in a minor bull wave up right now. Hold on to that future meal ticket while longs enjoy a feast TODAY. RIMM shorts will have their day as I completely agree with their long term thesis for RIMM, but NOT with their short term entries for trades. IF YOU ARE WILLING to take on 5-10 pts of pain then enough said, more power to you. What perplexes me is why you would track EVERY day, hour to hour, if you had such a "long-term" outlook? Please explain. The optimal short entry will be arriving soon but is not here....yet.
Enjoy the weekend, folks!
Quote of the Day (RIMM 125)
"First it is ridiculed, then it is violently opposed, finally it is accepted as self evident." - Albert Schopenhauer
Trade Signal of the Day:
Close longs from entries under 115
Disclosure:
LONG RIMM
Video of the Day
2 comments:
I get that RIMM will move up through the Apple earnings announcement. My question -- what are the ramifications of the high % increase in pps of RIMM on such low relative volume?
Great question....the volume/price divergence portends that RIMM may be setting up for a takedown soon. Why? Because moves need to be confirmed by volume. When they don't it is considered a weak/bearish move despite the pps. Remember, RIMM takes the stairs up and the elevator down.
Upside here for RIMM is limited and not advisable for new long entries. I still see another small leg up before we turnover, however.
Check back, I will post that short thesis when it arrives.
GL,
Cash
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