for those in the RIMM trade, here’s a 4 hour chart with an initial short-term target. as mentioned last week, i think this trade has the potential to be a good long-term swing trade/investment assuming that 1) we get some follow-up this week to friday’s breakout and 2) the market holds up. personally, i still believe the R/R does not warrant a full invested (on the long-side only) portfolio at this time but it’s up to every trader on what to take and how much of it to take.
a couple of options right now are a long/short (hedged) portfolio or for those uncomfortable with shorting maybe consider tightening up stops on your longs and going to cash with a significant portion of your portfolio as/if you get stopped out. this will allow you to accumulate some dry powder to pick-up some new positions or re-buy back into some of you stopped out positions as better prices on the next significant correction.
