Bolimomo
10-09-2008, 11:14 PM
Since it was said that there are some newbies in trading on board, I will start posting some of my thoughts on some charts that might be interesting.
Have you seen a short squeeze on a chart? There was one on RIMM today (10/9/08):
(Look at the attached chart)
RIMM held up pretty well all day until 2:00 pm (E). It was sold off along with the market in the last 2 hours. 61.50 to 55.00. That's a very big drop in just 2 hours! I was scared to long it at 55.00 - feared that this was really a "capitulation". At exactly 12 minutes (3:48 pm) before market closed, buyers started to come in, pushed RIMM from 55.00 to 59.00 in 10 minutes! A short squeeze!
I under-estimated this squeeze. I shorted at 58.00, near the Upper Bollinger Band. Only to see it rose to 59.00! Shorted another equal part. It came down to 58.50 or so in the last minute. I got out and broke even.
Have you seen a short squeeze on a chart? There was one on RIMM today (10/9/08):
(Look at the attached chart)
RIMM held up pretty well all day until 2:00 pm (E). It was sold off along with the market in the last 2 hours. 61.50 to 55.00. That's a very big drop in just 2 hours! I was scared to long it at 55.00 - feared that this was really a "capitulation". At exactly 12 minutes (3:48 pm) before market closed, buyers started to come in, pushed RIMM from 55.00 to 59.00 in 10 minutes! A short squeeze!
I under-estimated this squeeze. I shorted at 58.00, near the Upper Bollinger Band. Only to see it rose to 59.00! Shorted another equal part. It came down to 58.50 or so in the last minute. I got out and broke even.