Today was practically a replay of yesterday for the major indices. Volume did increase today and I think a good portion of that increase is due to all the action around Apple Computer Inc. and its iPhone announcement. It had a slight influence on trading in RIMM and PALM today:
I’ve included charts of RIMM and AAPL below along with the usual index charts…
I hate to add to the bearish consensus but I have to call ‘em like I see ‘em. Right now I’m seeing a lot of charts which look ready to roll over. A good number of them look a lot like the QQQQ chart — a weak bounce back to the 50-day moving average which reminds me of many of the patterns in William O’Neil’s ‘How to Make Money Selling Stocks Short’. For now the opportunities look better to me on the short side.
Below are charts of the indices as well as some of the better (worse?) looking stocks I found in my scans, including LRCX, BRCM, AAPL, MVL, RIMM, CIEN, RACK and GOOG:
I just heard the news of Research in Motion’s settlement with NTP. The stock is up about 17% in after-hours. RIMM also gave some poor guidance for the fourth quarter. CNBC had comments from several people, some of whom were long RIMM, and it was like a bear parade. They were mentioning things like subscriber growth was very weak and that Palm’s Treo and MSFT are taking market share from BlackBerry. They had me seriously considering shorting it right now & holding over the weekend. So tempting but I think I’ll wait for Monday morning. This will definitely be the stock to …
I got a request to take another look at Research in Motion’s chart. This one came from Mark who’s short RIMM just like Glenn, who requested it last week. RIMM has had some good news flow this week and has risen above all three resistance levels that I pointed out the other day, so if I was actually short it I would have been stopped out either yesterday or today. Although it’s above resistance it still looks like a good setup for a short but I’d be looking for confirmation by the stock closing below the previous day’s low and under one or more of the old resistance levels.
Here’s another chart for Glenn. He shorted RIMM, makers of the Blackberry, on Friday around $68. I’d definitely be looking for opportunities to short RIMM since both the long and intermediate term trends are down. This looks like a good area to try it short since you can but a stop nearby (above $70, the 50-day moving average, or the blue trendline.)
It looks like the news coming from the court is slightly positive. 
Here’s a 5-minute chart of the action.
I’m looking for that good ole “dummy” entry, if it ever settles down.
On another note, the Nasdaq has suddenly lifted away from 2,153. Maybe it will be come support now…
Update: 12:55 PM - RIMM isn’t even close to settling down yet and the details of the decision still aren’t public. I think I’ll just sit this one out.
Update: 12:59 PM - Oh the drama! Looks like they finally halted RIMM:
Update: 3:29 PM - It’s trading again and the drama continues. It’s getting waxed… now at $83 and change. I’ll …
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