[DRD] update

In this post I provided what I thought it might look like if Avi's model was going to play out.  The chart from that post is below.



I believe that this model is playing out.  As you can see, red 1 broke back down into the channel and kissed the lower rail from above before bouncing up and kissing the upper rail from below.  Not good from a TA standpoint and I have to apply the bearish count seen below.  Now, there is nothing to say that DRD will trade exactly the same way as all other miners.

After all, DRD is its own wave, unique and independent from all others while still being connected simply by being in the same universe as everything else the same way that light or ocean waves are independent and really don't know about their interactions with other light or ocean waves.  Only the external observer sees these interactions and in the case of stock charts, that is what we end up using Elliott waves to count: the charted interaction of the underlying wave after all other factors in the universe affect its absolute value but not its intrinsic immediate value or average direction.

One of these days I hope to finally get some insight as to how to filter the observed wave to remove the effects of the universe on the individual wave.  It's something I have been giving occasional thought to over the years hoping that my subconscious would at some point have a eureka moment on the matter.  No such luck so far but I feel that the answer is out there.

In any case, if DRD cannot break out the top rail PDQ (i.e. in a day or two) then I think it is quickly going to break down the lower rail with 5 more waves down as show at which point it will certainly be a buy and hold as if it were a non-expiring call.