Shares of RIMM took a major hit today, closing down 18.99% a share. This came in the wake of a highly disappointing August quarter financial report after the close on Thursday. RIMM reported disappointing sales, profits short of estimates, and weaker-than-expected sales of both BlackBerry smartphones and Playbook tablets.
However, MarketClub members have been short this market since March.
The trend is your friend, and so are MarketClub’s “Trade Triangles.”
Jeremy Lutz and The MarketClub Team
P.S. To learn more about the club Where Members Profit,click here.
"Research In Motion Ltd. (RIMM) will spend up to $1.2 billion to buy back about 21 million of its shares, or 3.6% of its total shares outstanding. The buyback will start Nov. 9 and last for up to one year."
That was the headline news today on Research in Motion symbol RIMM so I decided to look at the chart to see what was going on in the "real world". When I got to the chart, one thing immediately jumped out at me and that was the negative action that this market has shown in the past several weeks. Looking at this market a little closer I was able to see that our "Trade Triangle" technology was 100% negative and that our monthly "Trade Triangle" indicator had turned negative on October 28th at $63.38. This is a major negative in my mind for this market.