Rim has either completed an a-b-c after an initial down wave, or jaust the a part. Either way the stock should go down at least $20 or so so it should be sold. Note that the gap on the way down is now closed, and that both the MACD and RSI are decidedly negative.
We had a good run with RIM and then decided to leave it alone, something I warmly recommend, from time to time, particularly with high beta stocks like RIM. You do not have to play, or play all the time. Long term RIM has potential since , under one count, it still needs a fifth wave to complete a multi-year ascend. Here is the picture.
Under this count all of the action from’03 to ‘08 was wave 3 (notice that it stayed above wave 1). Ergo it is possible that we still need a fifth to say $160 to finish the whole cycle. This is at least plausible as RIM was a late comer to the tech party anyway. Now in more detail;
The red depicts the BAD scenario, the green the GOOD scenario. When will we know? One thing would be if we closed the second gap and reattached the island to the mainland, BAD. Alternatively we could close the first gap , GOOD. Keeping an eye on it, but must confess this is a stock I do not understand all too well. The problem in a nutshell is that we have 2 lows, making it unclear if the move down was an a-b-c or a 5-wave structure, time will tell. Fundamentally I can easily envisage either outcome, particularly once you start throwing money at sport clubs.
We are going to forget about this stock, it has done what was expected and now it is in no mans land. If the count as shown is correct it could be on it’s way to $30 ( this is most probable considering that wave 3 with the gap more or less in the middle and the 5th diagonal is fairly certain), ergo we have 5 down to go. Alternatively, and this is less likely , the upward correction is only halfway, this is a up, we are in b and c is still to follow. I think that makes very little sense. We are out , of course , and staying that way.
Today, after another 725.000 people lose their jobs in North America, obviously a very positive development in new economics, the market is on wheels. RIM, POT and all the usual high beta stocks are participating in the euphoria. RIM has the additional little boost from the option back-dating saga coming to a close with just a few hundred million dollars changing hands, (what ever happened to the good old days – 1820-ties -when children were sent to the gallows for stealing bread in order to feed their families?).
As stated earlier I would be out of this one even if the target has not quite been met. It does have a little more room, probable around $77.
