Intel stock collapse update

Here is the back link to the last post in ongoing saga of what I think the chart is telling me will be Intellegeddon.  The main chart in that post is reproduced to the left.  As you can see, it clearly predicted a dead cat bounce to about $23.40 (it assumed the 38.2 fib would be the target).   In fact, the current chart (below) shows that the chart hit $24.10 (which corresponds almost perfectly to the 50% fib retracement) before turning back down.

I can't make this up folks, the fib retracement lines are draw by an automated tool that I use.  I don't just pencil whip them in there because it fits my model.

In any case, I think the odds have increased that my initial model was correct which is to say that Intel is now in a major downtrend and that the first wave down has been followed by wave 2 up which has now likely peaked. If the chart continues to follow this model, and I think that it likely will, we are now working on wave 1 of 3 down.  I think that it will be confirmed to be a 3rd wave when the green long term support line is broken at or near the location of the orange arrow.  That break down should occur with a gap down (AKA cliff diving) and likely with increased volume.  When the trading computers see that it is going to be a strong sell signal.

Again I say, Intel will probably not collapse by itself.  Misery loves company.  When the herd moves, it will likely treat everything as one market as Prechter likes to say.  That is because when the margin calls roll in on your crappy assets that are highly leveraged, you have to sell good stuff in order to pay off the margin calls.  Thus, all future talk that I expect to hear from market patsies and victims about "this crash is unfair", etc. is really for sheeple only.  There is no fair or unfair about it.  It is a gambling pit with few real rules.  Most of it is controlled by some loosely enforced guidelines posted on the wall which are torn down the minute it no longer behooves the establishment to have such guidelines present (such as the indefinite suspension of FASB 157 mark to market "rules" back in 2009 referred to by the fed as "regulatory forbearance").