Gilead Science could possible have put in C of an expanding wedge. The DJIA has not yet put in 5 down and until it has that, it has nothing. This is the first chart that I have seen that appears to be potentially bullish. Not that I would pay these nosebleed prices but GILD is not going up or down alone. It will be part of the larger group.
Long time readers know that there has been an undeclared EW contest. Avi thinks that the recent big peak was 3rd and not a 5th. EWI thinks it was the peak of a monster 3 whose roots go back 100 years. Likewise, Avi thinks metals and miners are near a 2nd wave down and that a 3rd wave up of monster proportions will soon begin. EWI thinks that a big rally in metals and miners is happening but it will just be a B wave with much lower lows in the future.
Be careful on the short side!!I only have my puts left on the short side and if the DJIA show more than about 150-200 points on the upside from here then I'll at least take profits on my LUV puts. This kind of threat is why I would rather be leaning long commodities than short stocks. Now, if I see 5 down as in a lower low than the previous spike, I will change my tune. But that unicorn tail might be telling shorts to be careful. I myself am underexposed on the short side now while we wait for some EW confirmation that further bearishness can be trusted.
Drive for show but putt for dough!
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