Wednesday, September 21, 2011

On Selling RIM

A few posts ago I mused that Research In Motion at $23 was almost a joke – unless the market knew something we don’t know - but I don’t think RIM is going bust anytime soon. The technical view of RIM is one of the worst big cap train wrecks I have ever seen. RIM was so bad it had to be good

A few weeks later there was some technical good news on RIM based on a relative perform analysis on RIM vs. AAPL. In August RIM popped from $22 to over $32 then suddenly the torpedo and now right back to $22. Clearly the trade is not working and so I have three choices - sell, hold or add on to the position

Adding on is out because we never add to a losing position unless we planed the original buy in tranches. I won't sell yet just in case we are forming a double bottom. Note the slightly higher money flow lines. I will however sell on a weekly close below the August 8 low of $21.40 - see the daily RIM chart with the stop support line.


Piazzi said...

TSX has violated what you had marked as major support

sjalees said...

Hi Bill
Are you still holding RIM? It has hit darn close to Aug 8 bottom.
Best regards,