RIMM Update

*I was working on this RIMM post before the last market post I had to get out.

First we had the original RIMM (Take some profits-we expect a pullback soon) post and then we had the pre-earnings post which came to more or less the same conclusion and then the aftermath.

The analysis gets a little complicated here, RIMM did pull right back to our pre-earnings analysis pullback level, I had thought taking some profit in RIMM while it was still elevated and then adding back around those levels would be a decent play and thus far it has, the only question in my mind is whether RIMM can keep up a move like today's or whether it takes the more traditional route of building a small base area to reverse back to the upside. As you'll see, there has been accumulation in RIMM since the post-earnings plunge, the question though is whether it is enough. We'll find out in one of several ways, a pullback in price obviously and how 3C reacts or a continuation in the migration of the post-earnings positive divergence through longer timeframes.

On a daily scale or a big picture perspective, I still like RIMM a lot, as long as that daily positive divergence holds up I'll continue to like it, if something changes there, then I may feel different, but I have to go with the evidence in front of me and here's how it stacks up as of right now.

 Our first analysis of RIMM before earnings were involved suggested that RIMM pullback (now at least the second pullback), the first is usually yo the 10-bar (2-day chart for RIMM) yellow moving average, the second and subsequent pullbacks are typically between the 10 (yellow) and 22 (blue) price moving averages or to the 22-bar m.a.

That's exactly what we ended up with. The X-Over screen still has RIMM as an open long.

 Now watch what happens Monday on the 1 min chart with a leading positive divergence, this is nice, but it doesn't mean a lot unless it migrates through the longer timeframes, which it did.

 The 2 min leading positive as of Monday.

 Even the 5 min saw a leading positive so this was a pretty strong move considering Monday was a shortened trading day.

 We even made it the 10-min chart with a leading positive divergence so it's not much wonder RIMM made a move higher today, this is a strong divergence, just not a long one, but RIMM has some accumulation socked away on the longer term charts.

 At 15 min we can see the negative divergence that initially had me looking for a pullback, as it went on in to earnings, well, you saw the post, a move down was expected. So far we don't have a positive here yet, but RIMM's positives have moved fast so I need to watch the 15 min chart for signs, I'm thinking RIMM pulls back a bit before the 15 min chart sees a strong positive.

 The 30 min chart isn't even in the equation yet, beyond the negative divergence pre-eranings.

However, big picture this daily chart's leading positive is huge, so I still believe in RIMM, it's just a matter of tactics, how RIMM will get there, when and where to add or initiate and making sure RIMM's longer term daily chart doesn't deteriorate for whoever may be holding a partial position or looking to add or start a new position. Definitely interesting trade here though.

If you have questions about RIMM, feel free to email me.