In this post I mentioned directly and linked to other posts where I had been expecting an a-b-c dead cat bounce for TWTR back to the $45 range since that is the level of the 38.2 fib. I wrote: "I hate to throw out price targets like this but if pressed I would call
it $26 for 5 of C. The subsequent short covering rally should bounce
back to perhaps $45."
Well I waited for awhile and it seemed like the 23.6% fib was all that it was going to get, which I called "pathetic". In other words, it was not expected. After adjusting my expectations that the dead cat was already in, I failed to see the potential for today's 20% upward spike. I was just not patient enough and not trusting enough in the Elliott wave principle.
But this is not a buy signal. It is just short covering. It has now recovered to the level of the prior 4th as well as the 38.2% fib. Sure, it could go up to the 50% fib or even the 61.8% fib. But if it does, short the Hell out of it because it is going to turn right back down into 2015 if not sooner.
Wednesday, July 30, 2014
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