Am I gladAm I glad I didn't follow Poxon's technical analysis to buy RIM a few days ago!!
A posting from Yahoo
RIM longs are feeling great pain!
Despite news of sale to Bell South and CEO appearing on CNBC, the stock tanked with volume surge, exceeding million shares both on Nasdaq and TSE. Simply stated, it is a mini meltdown today. If good news, CEO appearance, analysts' comments are all unable to stop today's bleeding, then, it is highly probable that the bleeding will continue.
Longs would want to know when the bleeding will stop. Unfortunately, history has repeatedly shown that until there is blood in the streets - a state technical analysts call "capitulation" - the selling won't be over.
The longs are in a pressure cooker right now, with hot steam blowing full blast. They'll try to last as long as they can, but the pain will become unbearable. Eventually, there will be a big blow out, taking whatever they can get to recover capital, and especially to get rid of the pain. Ironically, the shorts and the day traders will be feeding to the longs, and not investors.
The only investors buying now are novice investors. Novice investors, lacking of experience, will buy during a stock meltdown, with the intention of holding long term. Novice investors are the institutional money managers' best friend.... without them, how are the money managers going to get out?