Short play RIMM (127.71) : Recently broke higher but momentum has lagged ?

Rational: About the time Apple announced their iPhone , RIMM and a few other competitor names sold off. RIMM now appears to be heading to test its previous support lows (123.61) and is displaying all the signs of a potential breakdown. Weakening momentum often occurs during a consolidation while ADX numbers fade to low levels as the essence of the trend dissolves.

Strategy: Wait for the test to prior lows and watch for signs that prices remain close to the support area. Expect a high volume breakdown. (Note: Whenever technicals and fundamentals begin to contrast, watch what the stock does compared to what people continue to say.)

Target: 116.50 ( Oct '06 support area)

Stop: 125.25