[LL] wave 2 pullback is now likely complete.

In the backlink I presented this model whose message was clear: expect a big pullback in 3 waves and this should represent a significant short term buying opportunity.




Since then we got the expected pullback and then some.  Long time readers know that anything more than a 61.8 fib pullback gets me nervous but with one major exception: the 2nd wave up following a long bear market.  And there is no mistaking the fact that LL has been in a major bear.  Importantly, we so far only have 3 waves down.  That a-b-c pullback is what we expected.   IF this model is correct, wave 3 or C up awaits with likely 50% gains in a single trading week.

It is also possible that LL goes down just a bit more as shown before reversing upwards in a short crushing squeeze.  But the important thing is the use of stops here because models are not certainties.  So when this thing does bottom out in this range and shows signs of life, that bottom should be your stop (1 penny below).  When the bounce does occur, look at the nature of it.  Is it a slow bounce or a sideways movement that is likely to form a triangle?  If so, be warned that it might be trying to form a 5th wave down and thus not worth the risk.  But if it takes off rapidly like 1 or a did then odds are that it is headed to the $44 range in short order.