A few posts ago I mused that Research In Motion at $23 was almost a joke – unless the market knows 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. The weekly displayed the MACD falling with no divergence in sight, the 10-week price channel has been falling for 19-weeks, the 10-week ROC has been negative for 20 weeks and the per cent divergence (CP#) from the 30-week MA is at a historical record of negative 50 per cent. RIM was so bad it has to be good
Now a few weeks later I see some technical good news on RIM based on a relative perform analysis on RIM vs. AAPL. The break down in RIM began last March 2011 when RIM slipped below $65 and began to under perform its rival Apple Inc. Note the series of under perform numbers through to early August. Now we can see the early up turn in RIM vs. AAPL and so I will stay with the position until the relative turns against me. Keep in mind that what is good for RIM is also good for the iShares Info Tech exchange traded fund (TSX-XIT)
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4 comments:
nice call i bought it also mostly on your bnn recommendation
Hi Bill. The NASDAQ Advance - Decline line is currently reading -119K (as per stockcharts.com). The last time it was at this level was March 09. Can we infer anything from this?
rim in the last five days is now unperforming apple. is it time to sell Rim now?
Yes Shawn, we can infer that the ad line was -119 on both Aug 30th and mar 9th.
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