I have blogged about RIMM a bunch of times in the past three years. In fact, I remember someone writing a comment after a post one time that the SMB blog only discusses five or six stocks including AAPL, FCX, RIMM, and CAT, to which I retorted poppycock! We discuss the stocks that are In Play.

RIMM was probably my most profitable stock in 2007. It was super In Play and had amazing intraday and mult-day swings. When AAPL introduced the Iphone in 2007 they put the world on notice that a new category was going to emerge called “smart phones”, and to a certain extent RIMM road their coattails as everyone assumed (myself included) there would be plenty of room for multiple players in this new space.

Roughly four years later the smart phone market has grown larger than even the most optimistic projections and RIMM looks like they may be eliminated as a stand alone producer of handsets within the next few years. Wow! Now to the trading part of this post.

There is no doubt that there are some people trapped long in RIMM who bought on the breakout above 28. But the reality is that the largest volume day recently was August 11th when RIMM moved from 22 and change to 24. In order for RIMM to really crack tomorrow those people will need to get nervous and start selling. That group would probably start to feel uneasy if RIMM gets below 23. Otherwise we are probably looking at some pretty good volatility with resistance at 25 and 26.60.

I will try to tweet something in pre-market based on the price action we are seeing.