It was inevitable that the market would have a good day. Earnings season begins tomorrow, and the market might stop obsessing about oil and recession, and turn its attention to numbers. At any rate, some sort of rebound was inevitable. The market has now spent 20 days in a row below the 10 day moving average- it’s only happened twice in the last 20 years.

My call in yesterday’s edition for a short term, oversold bounce in RIMM was very good- the stock was up $6.38 today and closed at $122.04- Up substantially from the early AM going of $115 where I suggested pouncing.

In fact, I decided to sell my 10 August 110 calls- I netted about $2200 on a $12k investment in two days. I’ll take that anytime. I decided to hold the 500 shares I picked up at $116.85- looking for higher levels there.

In fact, let’s look at an LPO (Logical profit objective) for RIMM. Here’s the chart:

On the left you see the perfect 61.8% retracement I covered in Monday’s edition. On the right you see the LPOs. Your first stop would be about $124, which the stock will probably hit in the AM if the market’s move today carries over to tomorrow.

If $124 gives way, I’ll be looking for $131.50 as the next target price. I’ll probably hang in there and hope for that level.

If you sold the QID and jumped into this trade, you should be very pleased. These trades can be profitable when the micros are simply stalled, which is the case in the current market malaise.

Aside from an update on SPKL today via the BLOG, there’s not much for report on the microcap front. Hoping for some news out of one or two of these puppies in the next week or so.

Comments and questions are welcome.