Dear Earlie, a rare visitor, indeed. I have no choice but to repeat my post to you of June 15th, the night before RMBS vaulted from about $55 to above $120 in a short 8 days: "When the TA and the FA do not jive, believe the TA". Since the beginning of September the Naz and the Sox have suffered a major blow, but RMBS is still in its trading range (about $76 to $86), unless it breaches $75 sometime next week, one should take an extremely positive attitude toward this stock. I myself will be a buyer in the $75 to $77 area, and if the Naz finally turns after an ugly beginning of next week, RMBS will be one of the few MOMO stocks still standing alive in a battlefield littered with the decaying bodies of yesteryear's generals. A lot of money will flow into the few survivors, IMTO, and that should be sufficient to take out that stubborn overhead resistance at $87 and possibly enough momentum could be generated to once more scale the barricades of the $100' and higher. Of course, a breach of $75 will render this post "invalid" and the post will "self destruct". (g).
Maybe the time has come to have a more constructive attitude to the market, at least till after the elections, next year... the deluge.
Have a good weekend
Zeev |
