Looking For Market Leadership
Buyers are looking for
market leadership. Maybe I should say buyers are looking for anything
moves higher. The weak semiconductor sector is pushing the NASDAQ market lower,
and the bank and insurance sectors are killing the Dow Industrial Average this
morning.
10:12:04
(From TradersWire)
Research in Motion (RIMM)
is trying to break out to a new high. RIMM is trading at 78.44, up 0.52.
The chart below is as of yesterday’s close. RIMM finished just under the October
7 high. Traders are looking to buy the issue as soon as it takes out 78.79. Of
course, in this kind of environment, traders are thinking about a quick small
profit.
Shortly after 10:15, RIMM took out the high and provided a buy opportunity.
About 30 minutes later, the stock formed a double top as you can see below.
Needless to say, it was a good place to exit the trade.
Good buying setups are scarce these days. Maybe that’s why RIMM has worked out.
Have a nice afternoon session!
If you have questions, feel free to mail them to me.