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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
Attachment Converted: "f:\eudora\attach\rimm daily 06-02.gif"
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