Just goes to show, even if the ducks are all lined up, anything can still happen. I was caught surpized today. I made a nice early trade for $1000 on the bounce, and it folded over as expected. Its an up day, and no bad news so I buy on down. And it kept going down. So I bought more. But it kept going down. There was nothing on cnbc so I bought a little more. But it broke below 50. Where the puck are the buyers? I dont get it? There is nothing bad on cnbc and Im scratching my head. But then I notice there is nothing new on cnbc either. So I lookup Yahoo news, and its all over the place. Wall street journal reports troubles with the Storm. The stupid cnbc stock news wasnt working. Now I am bummed. I feel like a sucker. Here I am buying when everybodys dumping on the news. Well its too late now and I absorbed the down day. The article apparently freaked everybody out causing the price to sell down. I will have to read the article, but the phone is new and they are working out bugs. RIMM will certainly make a statement about the article so I will hold out and hear what they say about it. But I have to follow the herd, so if it continues to dump, Ill follow suit and cut my losses. My opinion is that this is a pullback buy oportunity but its all up to what the herd does. After all, Im still a nobody.
umm, did you look at the chart i posted on the top of this page where i wrote..."looks like a good short"??
Yea its an interesting chart and the timing of your post was incredible, but its the news that hit the stock and verizon reports tomarrow. So if verizon reports great earnings related to their Storm sales and projections, I expect buyers will run the price right back up. This is realistically like an early peak at the real quarterly report to come as these figures will be added to RIMMs continuing sales when they actually report. Additionally, AT&T reports wednesday morning so we can get a peak at how the BOLD sales are doing. This is a good stock in these times as even the president wont give up his blackberry. I have serious doubts it will sell down hard or even stay down for very long. So I will think hard and endure more than the usuall pain before dumping it. After all, we are not at DOW 14,000 so the downside risk has already been heavily slashed. And Obama is hard at work readying huge economic bills that are within weeks of signitures that will bring a market rally. So you see, I weight a lot of different factors as I buy and sell these stocks, but today I wouldnt have bought in if I had seen those news releases. Its just a disapointment that will most likely be corrected in the next upswing.
or... MM's used news to mark down the price of RIMM since they were done distributing shares. With no professional buying to support the stock, it will continue to fall. Stocks never trade on news. News allows MM"s to mark prices up or down in order to make money.
Yea it is a complicated equation so we ultimately need to follow the herd up and down to minimize getting run over. But I suspect there are a lot of professional eyes on RIMM and professional money drove it up from 44 to 48 as the DOW bounced off 8000. It was a million shares within a few minutes that started the buying frenzy. And with real reports comming out and Cramers non stop blabbing, I see a lot of upward stampedes in the near future as people dream of that $150 stock price again. Just have to keep a close eye that this news report doesnt start a stamped in the wrong direction. MMs do their share to influence things, but the herd ultimately rules.
The news turned out to be no big deal and people will have to digest it a little and regain confidence. The storm has buggs just like the Iphone did and they have been fixing the software updates to work out the bugs. Verizon wouldnt comment specifically about RIMM but said even though wireless is down, Data phones were up 30% and data revenues sent to those phones were up 40%. Data phones are on fire and it doesnt appear that the economy is going to impact growth going forward. But due to lack of visibility, they just didnt want to commit to further growth beyond what is currently taking place. So it appears to me, smart phone growth is huge, and it would be blowing tho doors off the building if we werent in the middle of a recetion. I will be thinking long and hard about dumping this stock but I will certainly be taking profits as I go to build up tollerence for these unexpected downturns.
Thanks guys for comming back and picking me up. Sold all of yesterdays buys for nice gains. I'll try to stay closer to the herd from here on. Now Im leaving my initial chunk in because this stock has huge upside potential. I am still skeered snitless to short this untill at least after earnings and even then it all depends on what they say and how far up it runs in a sudden burst. Its pretty clear people want more than a 10% before they decide to do a big pullback. Lets face it. Even down here its pretty cheap by preformance standards. Now I been going both ways on Nokia, for those itching to do shorts. I shorted it solid thru earnings that I knew would be bad. So currently it has very limited upside potential so shorts shouldnt get squezed to bad. Just sold my long I got yesterday in the 11s for 12s today. Now short again. If it runs over my short Ill short more. They are into dumb phones and things look rough for the rest of the year. So they are not going up very far, and they may eventually drop below $10 in many fits and trys. You never know, but this is a much saver short than RIMM.
You know, another option would be to go short while leaving in your longs. I did that a bunch on Nokia while it was in the 15s. Some days I didnt know which way it would go so I added longs to stop the losses as it wandered up a bit. Then dumped them when I thought the upside was petering out. This cut my losses and made me more money on the downside. I may do that with RIMM so I can add protection and still leave my long with only 1 quick trade on a down trend I spot. It ties up cash, but this stock moves so quick, the hedge trade wont be there for long.
You know, something else to keep in mind. There are forces out there that don't want RIMM to gain a lot of altitude. That is why Apple published their threat of lawsuit without naming names. They are hoping RIMMs stock crashes, and PALMs release date is postponed or canceled. Good for their business. So as we patiently trade this thing up. Never forget that if Apple slaps a lawsuit on RIMM, the price will be coming down quick. One of the unforseeable risks of stock market trading and investing.:eek:
Hah, Crammer is at it again. He goes nuts over crappy news the WSJ hyped. Because of what they did, the stock started tanking and a few people like me bought great deals on down for another quick profit. Truth be told, I would rather this thing just go up steady like and not put me through a nail biter. A long time ago, 2001, I was trading Emulux in the low 100s when all the sudden, its charts started free falling. It went thru 90 as I was trying to type a buy order, then it blew thru 80, then 70 and I got a buy order off. It was all over the 60s as orders were furiously being crunched. Then it all just froze and I called my broker. They were overloaded and they didnt get to my order. Trading was halted and they couldnt complete my order. I was really bummed. Turns out some fraudster emailed an official looking news flash to a wire agency saying books were cooked and CEO under arrest. It was all over in 5 minutes. They eventually resumed trade way up at $120 and those that got filled got to keep their bounty and those that dumped on stops could only sue. They eventually caught the guy that did it as he made a half million on Emulux shorts. They took away all his money and threw him in jail.