The market has really beat the crap out of RIMM the past week or so. 86 to 68 without a significant intraday bounce. That is the definition of short term oversold. So today in our AM Meeting we discussed the possibility of a bounce.

We were focused on a couple of key levels from the prior trading day. We noticed that RIMM had found some support at the 67.80 level on Monday. We also noticed that a bid couldn’t hold above 69. These two levels established a framework for us to view RIMM’s trading action today.

On the Open RIMM quickly dropped 67.80 but immediately popped back up so I got long. I was mindful of the 69 level so I got flat in the 68.80s. I set my alert for 67.80 and when it got down there again I picked up some stock at 67.70 and placed a stop below 67.50. RIMM wasn’t my primary trading stock so I set an alert for 68.80. When it traded back up to 68.80 15 minutes later and seemed to be having trouble I got flat.

Then I made a big mistake. I forgot to set a price alert for 69. My plan was to buy my stock back if the bid held above 69. You would think that on a desk with dozens of traders that I would hear at least one call out that RIMM was near or above such a key level. But unfortunately not too many of our traders trade RIMM and those that do aren’t as vocal as they should be in calling things out.

By the time I puched up RIMM it had already moved up 25 cents and wasn’t offering the greatest risk/reward. So I waited for the up move to end before entering a trade. RIMM topped out at around 69.80 so I figured if I started to buy some on a pullback to 69.40 I would make a huge chop when it took out the intraday high and traded above 70.

Well, you know what they say about “The best laid plans…” RIMM continued down to 69 and below where I got stopped out for a pretty sizable loss. But it quickly traded back above 69 so I reestablished my position and caught a quick move back up to 69.50. That pretty much ended the AM trading session for me as I had to leave the trading floor to deal with some firm business.

It would have been nice to catch the up move from 69 to 70.25 that occurred between 11:00 and 1:00. Based on the nice consolidation above 69 it seems like it would have been fairly easy to accumulate a decent size position.

At the end of the day we identified an unusual amount of buying at 69.60 so I am long overnight. It was trading at 70 in the after hours when I headed home to walk Bowser. Tomorrow I will look to see if the bid holds at 69.60 or 69 to add to my position and if it trades above today’s intrady high I will look to get flat at 71. A failure at 71 will get me short.

Don’t forget to follow us on Twitter!