As you can see from below, we are now at or within a couple trading days of the top of red 2. When this turns down again it should do so with shock and awe. There has never been a better time to buy out of the money 2017 puts on LUV because this should be a 3rd wave down (or yes, L, possibly a C). Target price for the next move down will be $28 at best (so that is the put I would buy) and could go to $24 or even a bit lower before next support.
Nobody is saying this is even remotely possible right now but then again I was pretty much by myself calling on the top on this one too and I did it before the shares had even begun to show weakness based on nothing more than the EW principle.
I recently mentioned a long standing personal indicator that I referred to as Galaxy On Edge (GOE) and these LUV shares are a good example of that in both the B wave and in what I think is likely 4 of C both pointed to by pink arrows. Note that preceding GOE in the C wave was a rising wedge which I count as W3. So, W3 followed by GOE 4. WX is more reliable than GOE IMO but if you string together enough pattern matching clues like this then over time your brain begins to do some of the work subconsciously and charts begin to appear to have a "look" or a character that can often be a useful guide. We'll see if it works this time...
No comments:
Post a Comment