Intelligeddon update

In this post I conjectured that Intel shares were going to turn down based on nothing but its chart pattern.  Go back and look at the chart prediction I provided in that post and then compare it to the real time chart below.  The correllation is quite high.  The stuff in the blue box is what happen since my last post on this stock.  In the predictive portion of my Elliott wave model from that post I simply aimed hard down (red line) but of course I meant that it should go down in 5 waves (nothing goes straight up or straight down).  I've changed the red line below from a straight line to the familiar EW motive pattern just to make it more clear.

In the chart above, I currently model red 1 and red 2 as being complete and now the shares are working on red 3.  In fact, within red 3 I am modeling black 1 and 2 as being played out.  If this is a correct modeling then I expect a black 3rd wave down to occur that will likely include a large gap since it is a 3rd of a 3rd (black 3 of red 3).  And this whole wave that is happening right now is itself a larger degree 3rd wave.  So I see a 3rd of a 3rd of a 3rd happening real soon now and it promises to be a doozy (and thus the title of these two posts: Intelligeddon).

Look how red 2 retraced to the level of the prior 4th wave (wave 4 of red 1).  Look how the chart is requiring nested 3rd waves to break down the 38.2 fib.  Again, since this is all happening within a 3rd wave, the Elliott wave aspects of it will likely be quite easily noted.  December 20 puts will likely pay off handsomely for gamblers.  If INTC shares break below $19 then I foresee dire things for the stock.  If Intel goes down, it will likely not collapse in a vacuum.  It will likely be part of a much larger market collapse that includes IBM and other big names.

What will be interesting if this plays out is what happens to gold and silver.  I suspect they will be sucked down at first as if they were commodities but then they will likely bounce as shares keep falling because they will finally begin to be treated as a cash type of safe haven.  Lots of conjecture here for sure.  I hope people are enjoying the free financial entertainment.