The Market Ticker
Commentary on The Capital Markets- Category [Technical Analysis]

I saw a few so-called technicians comment about BlackBerry and a so-called "Death Cross" right around their earnings release.  More than a few fools apparently shorted into that too, if price and on-balance volume is to be believed.

But..... if you looked a price/MA trendlines chart over the last year or so you noticed something -- there was both a former death cross and it's bullish cousin, a holy cross, on the chart.

Here's the problem: If you traded either you got your teeth kicked in unless you were real quick; in fact, the right trade from a couple weeks to months or longer point of view was to fade both of those indications.

And now?

Pretty-much everyone who shorted into the death cross is underwater, which means if you're one of them I am now asking when the short squeeze that compacts your nuts up to the level of your tonsils is going to show up and blow your head off once again.  (That would make it three-for-three, by the way....)

Technical analysis doesn't always work, in short, and it's especially dangerous to pontificate on it when the last two instances of the same indicator on the same issue both blew up in your face.

PS: Watch resistance right around here, and, if it fails to hold, the top of the gap around $10.68.

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