Trade Of The Week: Long RIMM
The markets are in the corrective mode and I don’t have any kind of fortune teller talents to guess when the bottom has been reached. However, I track the NH-NL index of different indexes and my charts are telling me that we might get short term oversold. 20 day relative NH-NL is be, is below 50 % which typically leads to some kind of bounce. The corrective move bottoms usually forms around the -50 % spikes but not necessary around the fist puke point as seen on the chart at July and August 2010. I have no Idea if this is the case as well this time or not. I am open to all possibilities.
My weekly pick is RIMM which I tried to trade last week as well with no luck. I am looking for the overall markets to bounce and that might spark some kind of short covering for RIMM too. Daily impulse will turn to blue at 39.78 which is my planned entry as well. I’d like see how the markets open before I make my final call.
Peace,
Matias
8 months ago
