Facebook (FB) and Research in Motion (RIMM) have been big winners in the Chart of the Day series. Let’s take a look at them again. (November 26, 2012)
BBRY FB
Good evening I’m Dan Fitzpatrick at StockMarketMentor.com on Monday, November 26th. Before I get started I just want to mention we have a Black Friday sale, guess when that was? Friday, and it was extended through the weekend where there was twenty-five percent off of all Stock Market Mentor products. Apparently Gary got a lot of emails, not actually surprising, from folks who were, you know, lo and behold out of town on a four day holiday and still wanted to take advantage of it, so he’s extending that; I’m don’t exactly know how long but I’m sure an email will be sent out to our list. I just wanted to mention that to you before I started. If you’re looking for some of the products like one of our most popular ones actually is the “59-Minute Trader” course; if you want to learn how to day trade the first hour of the market, there’s your bogey, so that’s trading at a big discount. Anyway enough about that I’m not a marketing guy. Research In Motion ( $RIMM Research In Motion Limited (USA) ), you know we looked at this stock, seems like RIMM and Facebook ( $FB Facebook Inc ) are two stocks that we’ve been looking at for a while here in this venue and so I wanted to go back to Research In Motion ( $RIMM Research In Motion Limited (USA) ) here. I think this stock has a lot further to go; it’s coming out of a volatility squeeze, it’s actually pretty tight here so I’m looking at the weekly chart; you can see the big change in character here, this is a big base, now Research In Motion ( $RIMM Research In Motion Limited (USA) ) is moving higher. But what we’ve got here is, I mean how many days has this stock closed above the upper Bollinger Band, which is supposed to contain the prices? The last three days it has. That’s kind of a little red flag to me, like I figure the stock’s going to be selling off, at least pulling back a little bit, so maybe, you know, you want to take some profits or raise your stops, so let’s talk about that. I’ll tell you exactly how I would do it; I would use the prior days intraday low as your reference for stops, and that would mean that, we’ll zoom in even more, that would mean that today you were looking at Friday’s intraday low right there, and that’s where you would put your stop. Now, tomorrow you will be looking at today’s intraday low of $11.44 and that’s where you would put a stop; and by the way not at $11.44, but just a bit under it because what we’re doing is we’re playing this series of higher lows and as soon as that series is broken then we’re going to have a sense that Research In Motion ( $RIMM Research In Motion Limited (USA) ) is going to do a little backing and filling and if we’re short term traders we want to be out of that trade. That’s it for Research In Motion ( $RIMM Research In Motion Limited (USA) ); now Facebook ( $FB Facebook Inc ) on the other hand this is another one that we’ve been looking at. I think the stock goes higher from here, it’s coming out of a bit of a squeeze, earnings are not an issue, you know, none on the horizon, and also it’s still down forty-four percent from the high back here, so this stock still has a ways to go before traders start looking to sell it off; it just hasn’t come that far out of that base here. So anyway, that’s my take on Facebook ( $FB Facebook Inc ) and Research In Motion ( $RIMM Research In Motion Limited (USA) ). Once again you look at Facebook ( $FB Facebook Inc ) and you can see again that’s a low, higher intraday low, higher intraday low, higher intraday low. You can use that same technique that I talked about on RIMM ( $RIMM Research In Motion Limited (USA) ) to stay long on Facebook ( $FB Facebook Inc ) as well, I think that’s going to work for you. Okay, we’ve got again, Black Friday twenty-five percent off, I guess it’s now Black Monday, Tuesday, Wednesday, whatever it is, so check that out. Members get over to the on Strategy Session; about thirty minutes long but we’re covering a lot of stocks so see you there. Free Chart