TRX Memorial Day 2014 update

Here is my previous post on TRX.  The model predicted a significant pullback to around $1.80.  The price at that time was $2.47.  Today's update should highlight two major points:

1. At the current price of $1.88, TRX is rapidly approaching my retracement price target.
2. The wave structure itself is not playing out as expected.

As you can see from today's chart below, the chart is no longer the simple a-b-c that was expected if the peak at $2.90 was wave 1 up.  Instead, the retracement counts as a 5 wave move down and one that threatens to form an ending diagonal which is a form of triangle.  Since triangles are supposed to be penultimate, my count has to change.  What was "1" is now "A", the wave that is completing now is not "2" as expected but rather "B".  So, while the stock is very likely going to be a breadwinner over the summer, It does not appear that it will be all smooth sailing after that.  Some kind of complex structure is likely forming.  If should be very trade-able but I don't see it as buy and hold at this point.

As usual, an ending diagonal is not confirmed until the chart at least touches the bottom rail (but more likely breaks down through it) and then comes back up into the channel (1st confirmation) and then subsequently break out the top rail (2nd confirmation).  Any subsequent break down through the top rail is cause to sell immediately as the pattern will have been invalidated.  But what we have here appears to be a very nice inclining double bottom in the making.  There is every chance of making 80-100% in the next 3 months if you can catch this at $1.78-$1.80.  The C wave shown is where C=A.  If C were just 38.2 % stronger than A then that's where the doubling potential comes in.
 
A regular reader recently asked a question about TRX, wondering if it was good value at these levels.  My response (see comments section of this post) might be worth your time to read because you just don't see people speaking plainly about stocks very often.  It is common to come up with all manner of ways to impute value onto the shares in order to create the perception of value where no real value exists.  I'm not selling anything so I don't need to do that.  Even my blog loads lightening fast because I'm not selling 3rd party controlled, malware-ridden ad space.  It allows me to retain an unbiased view that I hope is at least entertaining if not useful and informative.

Bottom line: stocks that do not pay dividends have no value.  None.  Zero.  Any valuation of them is just made up by stock salesmen who ask you to imagine a time in the future when value could possibly appear so that they can offload stocks on you TODAY and collect a trading fee.  So in that sense, TRX is a horrible "value".  Even at 10 cents it would not be a "bargain".  But the chart suggests that current holders of the shares should see an influx of idiots who don't understand this and that represents an opportunity to sell to a greater fool in a couple of months at a fat profit.  This is what I am suggesting, and it is what I myself intend to do.  My plan is to take advantage of fellow speculators while at the same time they attempt to do the same to me.  It's pure gambling and anyone who calls it investing is either a patsy or a con man.