While the S&P is slowly working its way higher, it feels more as if it's being dragged higher by the Nasdaq rather than freeing itself from this channel on its own merits...
As for the DOW, it's still rangebound. Dollar strength is obviously a drag on this index...
Of note, the $CPCI dipped significantly lower today. This is a yellow flag for me (combined with sentiment readings and a slew of other contrary indicators) and another reason I'd like the opportunity to sell one more rip into the New Year's holiday...
In other news, I bought the dip in RIMM today. I wanted to pick this up around $64 (highlighted green), but decided against it in front of the earnings announcement - oooops! So instead, I waited for the next dip back to the 5 dma and now I'm the proud owner at $67+ (highlighted blue). Should be an easy stop out if things don't move higher from here...
If you're a regular reader, you may remember I used the same strategy described above with RIMM to pick a bottom in GMCR. I took an 8% profit when I got shaken out on a 50 dma rejection. Well, let me show you why you shouldn't mix timeframes. I bought GMCR based on the 30 day, 30 minute chart (purchase highlighted green) and you can see that this shoulda/coulda easily been held and still rewarding me as it continues higher along with the 5 dma. Instead, I was shaken out based on the daily chart (spot highlighted red here) and not the same timeframe as the parameters in which I originally set up the trade. Shame on me...
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