It appears we are going to start Wednesday off in the red. The early morning buzz is negative as Research In Motion (RIMM, $37.32) said profits are going to be below Wall Street’s expectations. The company cut its third-quarter revenue and earnings forecast, blaming a strong dollar and the weak economy. As a result, it appears the Dow is set to give back at least half of yesterday’s 270 point gain when we get underway.

The Dow futures are down 188 points, Nasdaq futures are lower by 35 while the S&P 500 is off by 22. These are quite high which could lead to a sharply lower open.

As for RIMM, the company now expects adjusted earnings of $0.82, down from its earlier projection of $0.89-$0.97. The writing has been on the wall in every john on Wall Street that RIMM would disappoint when it reports December 18. Keep an eye on the RIMM December 35 puts (RUPXG, $3.20) as they will be active but don’t go chasing them.

We are focused on a few other trades at the moment but monitor them and wait until after 10AM if you do consider a position. Trading is always wacky and skewed at the open and you can get a better picture of where the stock could be headed the rest of the day after the dust settles.

Rick Rouse