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Hi Wong,
just wondering, why do you suppose CSCO was only off about 35% at it's
worst, but they threw RIMM out the window, i.e. over the rim?
The market is trying to tell you something! As far as I'm aware the stocks
that were hammered the LEAST during the correction are the most likely to
outperform. I have no idea what's going on with RIMM but undoubtedly it
collapsed for a reason.
Most all stocks have moved up over the past few days. If you look around you
can probably find some stocks in UPtrends that also would fit with your
technical indicators. In fact, there's a handful of stocks out there so
strong that they were barely affected at all by the recent correction!
best regards,
phil
p.s. who knows, Mr. Bill could be right. If stocks are going to start
breaking out again first they will have to get back up to their highs, that
is the ones that aren't already making new highs. :-)
----- Original Message -----
From: wong <whs@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, June 04, 2004 3:55 PM
Subject: [RT] STK - RIMM - entropy
> Hi All:
>
> Here's a stock (see attached chart) that's been mentioned in today's
> Toronto Star Business Section - RIMM (Nasdaq) - Research In Motion". It
> also trades in the TSE (RIM).
>
> Today's article title is "Bought the lows of May? Then sell by Labour
Day"
> by Mr. Bill Carrigan, who's very well respected.
>
> Here's the concluding paragraphs:
>
> "Investors caught in the technolgy crash can look forward to two
scenarios.
>
> In the case of the RIM-type crash, I would expect a retracement of
> one-third of the correction or an advance to about $120 by Labour Day.
>
> In the case of the less damaging type of crash suffered by Cisco Systems
> Inc., I would expect an advance back to the old highs by Labour Day..."
>
>
> I mention this stock for 2 reasons:
>
> 1. Some of you who are fellow Canadians may be interested in it, since
it's
> a Cdn stock.
>
> 2. For illustration of how I would like to use the entropy indicator IN
> CONJUNCTION with an envelop/band
> type indicator such as the wb_Keltner channel indicator.
>
>
> Per the attached daily chart of RIMM (Nasdaq):
>
> 1. Note that I change the color of the -ent histograph from blue to white,
> to make it easier to read.
>
> 2. I would note the date AFTER the entropy indicator becomes non-white
> (could be just at the zero line or
> become yellow).
>
> 3. If the stock is at/near/above the upper channel of the wb_Keltner
> indicator, I will not do anything.
>
> 4. Otherwise, it may be a buy on the stock.
>
>
> By the way, there are options (US) traded on RIMM.
>
> If what Mr. Carrigan says is correct, then one stands to make lots of
money
> on the RIMM calls (sorry, no leaps).
>
>
>
> Regards,
>
> Wong
>
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