I had a tough Open today covering two shorts within pennies of their highs and then watching them trade several points lower. The rest of the day was fairly productive as I observed some of the most In Play stocks and called out significant levels to other traders on the desk. But my mood changed from neutral to very positive when I watched RIMM pop seven points on their earnings release. RIMM has been my most profitable stock during the past three years. If you look at the long term chart you can probably figure out why that is the case.

Here is what I learned in today’s after hours session:

1) A large amount of stock was bought between 68-71 in a few quick minutes
2) It stopped at 72 on a dime as if all the big hedge funds knew not to press their bets any further just yet
3) It had a very reasonable pull back to 70.50
4) the volume dried up by 4:30 and it spent the next hour trading between 70.80 and 71.80
5) The selling picked up a bit after 5:30 but as of now has not traded down to the 70.50 level
5) I would be surprised if it moves much more before tomorrow morning

Tomorrow morning’s pre-market trading session will give us clues as to what to expect.

1) If it is holding above 72 in the pre-market then expect upside to 75-76
2) If it is trading above 71.50 I am moderately bullish but still need to see it hold above 72
3) If it is trading below 70.50 I would be cautious about buying into a pullback before 69
4) If it is trading below 70 by the time the market opens then it may drop all the way to 68

Based on how good the numbers were I would expect a bunch of analysts who follow the stock to reiterate their buy recommendations and raise their price targets which could add some fuel to the fire.