Sunday, December 28, 2014

GRPN likely about to double

I don't know anything about GRPN except that it has to do with some kind of coupon for cut rate prepaid goods and services.  I've never used it and won't waste my time looking at its balance sheet.  However, it was mentioned in passing in an article I read so I decided to look at the chart and make a prediction based only on the chart shape with zero knowledge of the so called fundamentals.

I see that 5 waves up peaked in Sept of 2013.  That's motive so it is an A wave.  Then I see an a-b-c retracement into the May2014 low.  That's corrective so it is B.  Now we have the stock winding up with the up-down-up-down higher lows and higher highs which I see often at the starts of Cs.  I think the herd just saw the big crash and then an excellent run to $13 (big percentage gains for longs...) and then another big pullback and it's wondering if this goes to zero or takes off now.

While it will likely eventually go to zero, I think we still have more time before the mass BKs occur and 2015 is smelling like a year of increased inflation.  This benefits anyone who has gotten smashed into the dirt because of solvency fears and it drives shorts to cover.


2 comments:

Anonymous said...

Cap'n,
Inflation first, or deflation, then inflation, as you mentioned in your 9/11 post, below? And how will this affect equities and the VIX?
Steven B.

The Captain said...

Remember, nothing goes straight up or straight down. I suspect that the broader trend is deflationary but that 2015 (at least early part of it) will be inflationary. The dollar will weaken, gold and silver and oil will rise, etc. But that will just be the B wave. Look up the reprint of prechter's 2011 commodity deflation chart that I posted. It predicts inflation into 2015.

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