[JCP] could catch a significant tail wind tomorrow.

It seems crazy that I would be talking down the Dow and the NASDAQ on one hand and then suggesting that JC Penny could catch a bid on the other.  In all fairness they should be trading together.  But there is a lot of hot money out there still, a lot of margin leverage that needs to be put to work.  Stock traders don't trade stocks because they like it, they do so in order to pay the bills.  They HAVE to put their (your) money in something, anything.  It really doesn't even matter what as long as the traders can say "everyone was doing it".  That is all the defense they need: "I was keeping up with the herd in order to avoid being trampled" or "the music was still playing so I had to dance".

Of course, the reason I choose now to say it is that I think a-bc has finally played out and I think it will avoid going to a lower low by a hair.  So it will still be a valid 2nd wave.  Which means traders could pile into it if the 3rd wave starts to show momo (momentum).  The first wave up was quite easy to call a motive wave.  The wave back down also seems an easy a-b-c call even if it almost went below the left hand point.

There is a really easy way to play this one: buy at the open and then set your stop loss to just below the horizontal line.  IF they dare take out your stop then the EW chart will be broken and for a few cents they will have screwed up a major percentage move.  Make no mistake, this could easily double in price over the next month according to my possibly incorrect model.  This one seems unlikely to the naked eye so I will give it 65% probability of playing out as shown but my gut says it will happen despite the odds.  Or is that just indigestion talking?  Time will tell but I do think I will buy this one at the open to see where it takes me.