Drug-Like Properties

As a brief follow-up to my last blog post regarding BlackBerry, on the first daily chart below we can see the various spikes and subsequent fades in recent quarters for the floundering cell-phone maker. In essence, BBRY is trading like a single-drug biotechnology firm, spiking on various rumors and FDA announcements and then quickly fading and going dead for long periods of time. 

Unless and until BBRY can hold over $11.65 with commitment, it is hard to see that dynamic on the stock changing. 

Moving on, my new position today, short UAL, can be seen on the second daily chart leaning down against well-defined lateral trend support. The more that lower light blue line is probed, the more likely it is to eventually give way. And that is precisely the crux of my bet. Moreover, the major airlines have seen a steep, prior, multi-year advance with plenty of good news likely priced in already.