Fast forward to the current snapshot. Blue w3 from above extended down just a bit further than anticipated by the model but then we got the rapid Sha-Wing! pop into blue 4 that was quite in line with the model. Additionally, the model then said after 3 waves up then profit seekers would be best served by bailing out and waiting for a lower low.
If you aren't amazed at the accuracy of a properly interpreted Elliott wave then you really need to check your pulse or something because, folks, no person can do this with any kind of reliability. That's because emotions control us whether we like it or not. Only a properly interpreted Elliott wave has any chance whatsoever of helping you anticipate the turns like this. And the percentages moves in share price we are talking about here are significant: 30%, 40%, even 50% in the case of blue 4 above.Because of the recent look of this chart, I am now slightly changing the model. Note we are not talking about shutting the barn door after the horse has fled here. That is for traditional stock chart analysis. But you can see in the model above that the next next wave up after blue 5 was supposed to be a massive lift off.
While that lift off is coming in 1H 2016, I have even better news for for those who don't mind trading in and out every couple weeks. You see, I modeled blue 5 above to be the 5th wave of black 5 (which is implied above although black 5 was not explicitly marked). And black 5 was supposed to be "the" bottom according to that model. But because of the way black 5 bottomed and because of the action since then, I am changing the top level count of my primary model to add one more wave to the start of the big sequence as well as to the end of it. As a result, the bottom shown below was in fact black 5 BUT that was just a W3 of a larger red count.
Folks, I should be charging for this one not only because I am clearly "in tune" with the movements of this particular herd but also because it leverages my proprietary Wx indicator to let me know that the odds are high that the recent bottom wasn't a 5th but rather a 3rd. It took me literally years of chart staring to eventually come up with an indicator that has been high odds reliable like this.
So here's the trade (not to be confused with investment advice because I am not a licensed investment adviser). I expect either 5 down (which a gap down counts as) or 3 down on Monday do kiss the 61.8% fib. It could also dip as low as the 70.7 fib so don't let that surprise you if it happens. Much below that and I'd begin to worry a bit.
Risk takers will buy that dip. However, an added margin of safety will be achieved by waiting until it comes back up into the channel of the falling wedge and then breaks out the top rail. In either case, buy the dip and then put stops in just below your buy point and go about your day. That's what I will be doing!
If you get stopped out then you lose almost nothing. But if the model holds then you should be able to profit 20-25% on this move into red 4 (target price $$6-6.50) within 10 trading days, probably less. If if you are only betting $1000, that should net you at least $200 profit and it should do it with good safety as long as you wait for the model buy signal and then use stops as suggested. If that's not worth a nice financial show of gratitude then I don't know what is. Of course, many people will trade a heck of a lot more than $1000 on this and to those of you in this category I'll just remind you that karma is real ; )
Of course all of this is just odds enhancement technology and odds imply gambling. If you don't know that trading stocks is nothing more than high stakes gambling then let me give you the best friendly advice ever: RUN AWAY from the stock market. IF you think you are "investing" then please, please don't read this blog anymore because this is not for investors. Investors should go to financial advisers.
No comments:
Post a Comment