As I watched Palm, Inc. (NASDAQ:PALM) dump over the last couple months, I looked for the rare opportunity to do a little bottom fishing.  My motto is, nothing goes straight up and nothing goes straight down.  After playing Palm, Inc. a few times on the way down, I sat on the side lines again, watching as earnings were released.  The stock got crushed again.  At this point I wrote this article to my premium members of the Research Center, alerting them of a possible long trade on Palm, Inc. if it went below $3.75.  Sure enough it did.

For those of you who have seen the price action today, you know what a great buying opportunity that was.  The stock hit a high of $4.39 today.  An entry of $3.75 would have given you a profit of 17%.

To understand the nature of the beast, always take analysts and negative Nellies with a grain of salt.  When an analyst gives a price target of “0”, let the weak hands dump and be waiting at the bottom.  Most institutions do the very same thing.

Rumors driving Palm Inc. higher today are a possible acquisition by Research In Motion Limited (USA) (NASDAQ:RIMM).  Is this likely to happen?  Probably not and that is why you should never marry a stock.  Trade them, enjoy the profits, move on to the next one!

Enjoy the article below.  It is time stamped as well for confirmation.

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com

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Palm Possibly Attractive As Wall Street Emotion Signals Opportunity
By Inthemoneystocks on March 21st, 2010 1:22pm Eastern Time

Palm dumped in a major way on earnings on Friday. One analyst even gave it a $0.00 price target. Palm closed at the lows of the day at $4.00.

For those of you that follow me, you know I feed off the contrarian factor. I am a true believer that there is a trade in any stock. A stock might be looked at as a god but at some point there is a great shorting opportunity. Even a stock that is given a price target of $0.00 by one nutty analyst, there is a short term trade to the long side. I could not care less really as a trader, if Palm goes to $0.00 at some point. For those of you that are true swing traders and day traders, you should not care either. Never get emotional about a trade, never fall in love with a stock.

The more bearish the news, analysts and public get on a stock, the more bullish (short term) I become. This happened in the last trade on Palm where we were able to take some solid profits, on the swing trade to the side.

Palm is setting up to be another nice long play for a bounce. I have no idea where it is going to open on Monday, but I like it if it falls to $3.75 or lower. If it does look extremely weak on Monday, I may buy a half position to keep my risk down and be able to lower my average price should it move lower. Ultimately, these type of trades can be the ones that will make history.

As I always say, when everyone else hates it, I love it and will make money from loving it (short term).

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com