RIMM Update

Click on picture to enlarge

Sell target on RIMM moved down from 115 to 113. This target is lowered because the initial 115 target was calculated on prices bottoming around 95.00. Two days following the buy rating, prices bottomed at 93.37. Were up about 11.00% in just 3 days so I hope that you all took some profits in the last 30 minutes of trading today (Mar13th). The last 2 hrs of trading showed extreme signs of weakness in the futures market. There was insider selling and a block sale on YHOO went through for over 2 million shares. The S&P500 *Resistance points noted in earlier postings were "temporarily" violated intra-day Mar12th, bringing a sigh of relief for the bulls. Unfortunately, prices were unable to close above our resistance target and as result we are still projecting a decline in the S&P down to a minimum of 1,244. On a relative performance basis, RIMM has positively diverged from the weakness seen in the broader market. This divergence means that any subsequent declines in the futures should be viewed as corrective behavior for RIMM. The S&P is allowed to make new lows but RIMM is not. Any decline in RIMM below 93.37 from this point on should not be taken lightly. The initial reason we recommended buying RIMM was because a major support level was calculated at $93.79 - $93.84. The daily closing price violated these levels by 0.20 -0.25 cents.

---------------------------------

Update Wed July 2. RIMM went much higher than I originally anticipated. The concept that upward corrective action for the S&P500 would result in upward impulsive moves for RIMM remained true. My original projection for this leg of the S&P 500 decline was 1,244. The actual number was 1,256.