Friday, September 25, 2009
Research In Motion - How Fast the Turn Can Be!
Research In Motion (ticker: RIMM) is one of the darling tech stocks, like Apple and Google, which can do no wrong when the bull is raging. But the turn in RIMM today, like previous turns, came quick and without a whole lot of warning. When the bellweather stocks start to turn, the bull has no more fuel to keep the flame going and the torch will be passed back to the bears.
Here's a 20 month daily candlestick chart of RIMM thru 8 AM today:
When the stock bull rally "darlings" like Apple and Goldman Sachs crack, it's over for the bulls. This bear market has a lot more damage to do, both in time and price. RIMM is not a bad opening salvo/warning shot. Until the Dow to Gold ratio gets to 2 or less, stocks are a poor long-term investment.