Monday, November 2, 2009

RIMM Trade set up 11/02/09

A real quick snap shot of a RIMM set up I saw today. We saw futures spike post ISM #.

The S&P futures are in red on the top chart to the left. I circled the spike in the S&P price post ISM.

At the same time RIMM (in green on top chart) was weak. RIMM was -$4 on the day. RIMM had absolutely no uptick with the market.

Below we see the daily on RIMM. I am an amateur chart technician at best, but it is clear there is the gap to fill on this chart. So we had a weak stock, divergence with the market, and confirmation on the daily chart. When the market sold off RIMM accelerated a bit to the downside. I like the percentages with this set up.

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