[LL] update

The backlink on LL presented the model below along with the commentary, "I contine to model that LL is near a big bottom at these levels.  It will not BK, at least not just yet IMO.  It will bounce when the broader markets bounce.    But until it can break the down sloping resistance line I would just sit and wait.  While the action off the bottom has not been very motive looking, the first waves up can be anemic simply because the shares have to break the downward momentum.  If this is going to break out then it should happen soon as part of blue 3 (not shown below) up.  A nice gap up above resistance would start the shorts to run for cover.  It could happen any time now.  But if it cannot break out real soon now, expect more pain."



Per the current snapshot below, LL did break out at that point but it was not clear if it was just 3 of C of a larger downtrend or possibly 3 of 5 of 1.  The move since that last big spike looks corrective so we will have to see if this big pop today has any follow through but with a gap like that based on Einhorn's suggestion that government will not find malfeasance in the top mgt action is pretty good news for new longs.  All that's left is for the government to say it is done punishing LL and the shorts who piled into this while Einhorn was bailing out on them will be left with a serious case of the squeeze.  I will definitely be buying the 3 wave dip on this one, minimum bounce target is $32 and that could happen very quickly in a squeeze situation.