[LUV] update

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If you refer back to my first post ever on LUV you will find the model shown below was provided there.


Since then I have updated and reinforced that initial model in multiple posts, never wavering from it.  Today's update is shown below and the wave count suggests that buyers could likely step back in for a sucker's rally before continuing the emergency landing for these bloated shares.  The shares recently spiked momentarily below the 38.2 fib and then quickly re-took it.  I model a 3 wave move now into blue 4 before heading down, likely into an inclining double bottom.  After that I believe that the shares will likely bounce to one of the 3 usual suspect fib levels as shown below.

Despite the correctness this model has displayed, never take anything for granted, always keep track of your own wave count and folks, use stops at those point where the model itself says you should.  Never forget you are trying to track the movements of a massive herd of wild animals and so some degree of apparent chaos will always be present.  Even though fortune favors the prepared mind, don't mistake a raft of recent fortunate calls with infallibility; the accuracy of any EW technician is itself governed by Elliott waves and thus it comes and goes in waves.

The coming bounce should be a wave 2 and 2nds are often vee shaped and sometimes deep.  Thus they should not be ignored even though they represent a likely counter trend bet. You can buy here and then put in stops just below the recent low or wait to see if the 3 wave move into blue 4 materializes and let the inclining double bottom play out and then catch the full retracement bounce into red 2.  I expect the coming bounce to be very tradeable given that wave red 1 down was a rapid collapse from 47 down to 31.  That is a massive percentage loss for a big name wall st darling stock like LUV, again begging the question of what the real value of stocks is.    Someone has got to be eying these shares and thinking it is likely time to buy the dip.

I've stated many times in these pages that when the mammon money is in growth mode, mainly due to the scam of fractional banking's effect on growth of the money supply, the sky is the limit to the upside.  After all, when you are playing with other people's money, who cares what you pay for an "asset"?  All that matters is that you can at some point find a greater fool than you to dump the shares on at a profit.

Now here is the part that the American sucker doesn't understand: I mentioned all these purchases are being done with Other People's Money (OPM).  But in truth, they are being purchased with margin debt, not real money.  That debt that has been created from thin air under our government controlled fractional reserve money supply rules and then loaned out for profit.  So much of it has been created that default is assured at some point and when that happens, who do you think will get stuck with the bill?  SOMEONE has to pay folks.  If you are in a Vegas business deal and you don't know who the patsy is, it's you.  The debt doesn't just evaporate!  It will all land on the backs of the American taxpayer at some point in some form or fashion because only the worker will have the ability to pay and the ability to pay is all our fucking crooked system cares about.  Make no mistake: they are already planning and scheming on how to make me and you pay for their excesses.  Get your wealth out of their system like I did and then you will have one less thing to worry about when it all comes tumbling down of its own corrupt weight.