Once of the major tenet's of trading, price has memory.
RIMM reported after hours today. Came in profitable, but below estimates. Here is where price sits at the moment:Since May of 2007 price has used the $56 mark as a respectable pivot.
Notice how the last time price tagged this mark price didn't have quite the response it had in the past.
On tomorrow's open, RIMM will be sold at a discount (compared to the day before) and it will be an opportunity to observe what the buying interest is at this "discounted" price. If the discounted sale price doesn't attract more buyers than sellers (of those who just want to get rid of this POS once it goes below an equilibrium pivot) then me thinks RIMM might end up having a fire sale.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.