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RIMM Is Still An Avoid

June 30, 2008 11:04 PM

I do not like RIMM here. I am not sure if it is a short as it “could” make a new reversal at any time. I think the trade is just too difficult and should be avoided until we have clarity. The gap lower should have been the short, IMO, not chasing lower. The short really was once $127.63 cleared on the gap lower and it became obvious the stock was not going to reverse on the day. From here on, it is a bit of gambling, IMO. But it would have to clear the gap high of $128.01 to have any chance of an advance I believe. If you are already short in that range, I see nothing to make the case to cover here.

I still think the hype surrounding the new phone will “eventually” draw buyers. But I guess their report in the earnings will dampen that as they warned that expenses related to new phones would be a drag. It wasn’t the earnings that punished the stock, IMO. You can short it but you HAVE to know what you are doing. Any sign of a reversal you need to exit. So this trade should be left to the pro’s, IMO.

Written by Tom@StockBlade.com · Filed Under Stock Comments 

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