Archive for February, 2010
Research in Motion (RIMM): All Pain, No Gain
Research in Motion (RIMM) is getting “rejected” for the third time at the huge gap it popped back in September. Note how On Balance Volume (OBV) has deteriorated in each test, flagging the subsequent reversals.
It sure looks like institutions are still closing out their positions on this former market leader.
Fibonacci Retracements and Convergence-Divergence
It’s natural to measure the “quality” of a bounce by the percentage of the rally off the low but, ironically, this often yields false conclusions. A better way is to measure the percentage of the retracement into the prior downswing, using the Fibonacci tool.
Here’s an example:
The above chart shows the Russell-2000 Index Trust (IWM). Its [...]
Apple: Holding Up Like A Champion
I’m more than happy with Apple’s price action since the correction began a few weeks ago. It’s holding 190 like a champion, showing that institutional buyers are making a noble stand at that level. However, the chart still looks moderately “broken”, raising the odds for a downswing that fills the gap at 175. That’s also [...]