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Research In Motion (RIMM) Continues Downward Trend
Monday, August 23rd, 2010
12:45pm (EST)
The bulls took the major indexes higher at the open but thing started to change after an hour of trading. The Dow was showing an 80 point pop but slipped into negative territory after drifting lower as we head towards the second half of trading.
The bears were patient as the bulls lacked any real conviction and there is no major economic news due out today. Earnings are light as companies start to close the books on 2Q earnings and look ahead to 3Q’s numbers. As a result, the major averages are hugging the flat line as both the bulls and bears feel each other out.
The Dow is currently up 11 points to 10,225 but has traded to a low of 10,191 and below our intermediate target of 10,200. We said last night the bears will be taking a shot a Dow 10,000 and that appears to be a good possibility this week.
The S&P is showing a gain of 2 points and is at 1,074 while the Nasdaq is lower by 7 points to 2,172.
Other tidbits from today’s action:
From time to time, we like to voice our opinion on analyst’s upgrades and downgrades on stocks. Today’s head scratcher comes from Deutsche Bank (DB, $65.11, up $0.17) which downgraded shares of Baidu (BIDU, $79.70, down $2.47) this morning.
DB lowered its rating to Hold from Buy but raised the price target to $86 from $80. Shares closed at $82 on Friday so, technically, weren’t shares a Buy if they raised their price target?
Research In Motion (RIMM, $47.83, down $0.89) continues to gravitate towards its 52-week low and could be headed for real trouble. Our channel checks are showing the Torch is not keeping pace with the other “smartphones” and RIMM is losing market share at an alarming rate.
Mosaic (MOS, $59.01, up $2.37) continues to spit fire while Potash (POT, $151.52, up $1.85) stays smoking hot. We did a big write-up in our Weekly Wrap on the Agriculture sector last night for those of you who may have missed it and want to hear our thoughts.
We have a lot to cover in our Members Area so let’s get to it! Subscribers, check for today’s updates.
Tags: BIDU, MOS, option picks, POT, RIMM, stock options trading
Posted in Company Commentary, Hot Stocks, Market Commentary | Comments Off