(RIMM) is at a very interesting place right now. We had this stock brought up in the Mentoring session last night, and did a technical outlook on it. The technical outlook shows a Type Two Sell with Elliott Wave setting up on both the Daily AND the Weekly chart. (see below)
That is all on the Technical side. On the Fundamental side, many analysts have upgraded their expectation for RIMM. Jim Cramer was ranting and raving about them the other day as well. (RIMM) is also releasing earnings on June 25th after the market close. All of this Fundamental attention culminating at a technical capitulation high is very exciting.
We sometimes see at major market highs and lows, an influx of volume. This is typically accumulation and distribution. The big players in the markets either have to get rid of or accumulate massive amounts of shares. They cannot just do lump orders for 10M shares or more. Thus, they have to spread it out over a few days or so. If more than one entity has to do this, we get the massive influx of volume at these turn around areas.
Now, I don't know if this is what is going on with Rimm or not, but it is a possible scenario to say the least. What if Cramer, GS, ML, and others have huge inventories of (RIMM) on their books, and need to get rid of them before a down-turn in that market? How would they stir up enough interest in this stock to have enough people take the other side of their card? Since they, and others, have a major impact on consumer opinion, just by opening their mouths on television and other media, they can sway enough opinions to distribute their shares. Again, I don't know that this is what is happening in this particular case, but it wouldn't be the first time it has happened, nor will it be the last.
This is just a heads up to everyone watching (RIMM) right now that both the technicals and the fundamentals cannot be right at this juncture. One or the other will win out, and I am anxious to see which one it will be. Pay attention. Keep your eyes and ears peeled, and BE PREPARED!
nate mccartney
If I run a Gann box from the mar 3 low the W3 & W5 highs are very close (out by 1 day) to lining up with the 45 & 72 gann numbers. Would I now be looking for another significant event to take place at the next gann increment which is 90 ?
Posted by: Anthony | June 22, 2008 at 08:54 AM
good call guys
Posted by: dan choi | June 25, 2008 at 01:15 PM
Anthony, yes. You would have the expectation that SOMETHING significant should happen around the 90th day. It may not be an all-out reversal. I could just be a retracement, or a heavy volume day. It doesn't have to be the end of a trend.
Posted by: Nate McCartney | June 26, 2008 at 07:22 AM
Thank you for the excellent post. Looking forward to attending the 3 day seminar in Australia starting Sunday.
Posted by: Anthony | June 26, 2008 at 07:55 AM