MV Weather Report: Flash Flood for RIMM?
Rain or shine, we review the day's biggest stock stories.
The top story of the day was that BankUnited was seized by federal regulators and taken over by a group of private-equity investors. It was the largest bank failure this year. I think Minyan Peter described the situation best: "The bank had been operating under various degrees of enforcement for almost a year and hadn't filed a quarterly report since June 2008." Perhaps that's why the Street's reaction was so muted. Still, it was a reminder that risk is still high, as Mr. Practical might say.
The banks -- Bank of America (BAC), JPMorgan (JPM) and Wells Fargo (WFC) -- all traded lower, but there wasn't the overall market reaction we would have seen 4 months ago.
As for the S&P 500, it finished the week slightly positive. It's now looking like the market is entering a trading range between 925 and 875. We pretty much haven't gone any where over the last few weeks.
Even though the market is range bound, I think we may see some movement in individual stocks--especially those that led the rally. One of those leaders was Research in Motion (RIMM); I highlighted RIMM in one of my first articles on Minyanville. Since the start of this rally, RIMM has went from 35 to a high of 78.
On today's Buzz and Banter, Professor Jeff Cooper gave his thoughts on RIMM:
"Checking the Square of 9 chart we see that 540 degrees up from the 35 low on RIMM was 78 (the last swing high).
Those of you who are familiar with my work know that 540 degrees are corrective moves "(both up and down). This is born out in my study of the S&P from its inception. Why is 540 degrees important? My feeling is that it represents a true completion or square as it is a 6 sided cube of 90 degrees (90X6).
"90 degrees down in price from 78 on RIMM is 70. 180 down is 62 and lines up with June 6th.
"A move down to 62 into June 6th would set up an interesting inflection point in RIMM."
I would also note that Professor Fil Zucchi entered a downside position in RIMM.
Check out the trading radar - a short light week ahead.
Have a great 3-day weekend!
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