Sears [SHLD] upcoming opportunity

Sears has now entered that phase of its breakdown where it is beginning to point straight down as in all sellers and no buyers.  Many of those sellers at this stage of the game are short sellers.  If you think about the dynamics of a unicorn tail, the shares go into a panic sell off and head straight for the ground after having already lost much of their value.  Then, after the final spike is in, the shares rise rapidly with a 2, 3 or 4 bagger not being uncommon. 

That rise is not coming from new believers in the shares!  When the shares hit bottom, they are reviled by the market.  But they are also loaded to the gills with short sellers which means they have entered a negative Ponzi of their own.  Unless we expect the share to just go straight to zero, which is rarely if ever the case, these shares will begin to bounce and that bounce will set off a chain reaction in the shorts who will then begin to panic buy.  That is the nature of a unicorn tail.

I want some of their money on SHLD.  If my model is correct then I expect a move back up to test the lower rail from below which will bring in another wave of rabid shorts pushing this down to ~$4.50 or even lower for a brief period of time.  But then some "news" will happen which most insiders know is not new news but which is enough to scare the lead short sellers into covering.  Shorts who cover are called buyers..  The shares then rise rapidly on the cascade of short covering.

Maybe it won't go down just like I want it to and if not then so what.  Another trolley car will be rolling by in 10 minutes.  But if my model plays out then we should see a quick 3 bagger on these shares off the bottom.

By the way, people who don't know how the stock market works will say I am crazy but in fact a properly executed EW driven trade is not as risky as it might seem because this is not a buy and hold deal.  I'll leave that to idiots who think Jim Cramer knows what he's talking about.  Buy and hold is for people who don't think it is possible to model an exact top or bottom.  Thus they never know where to put their stops.  I on the other hand think I can get pretty close and I will employ the cost average strategy once I see red 5 being complete.  Start with just a very small bet (whatever that means for you).  Then I would only add to it if I got the right EW setup.  If it spiked down in a huge extension to $2 then I would double down. 

So start small at the point where you think the shares bottomed per the wave count.  IF right then you make a small profit on the triple.  If wrong and it plummets straight down then go in heavier.  When it bounces, sell to make yourself whole and then play with house money. I can't tell you how many times I have made this work for me.  Remember, I don't give a shit about Sears.  I don't care if it BKs or not and it probably will.  I have no emotional dog in this hunt.  I simply know that USUALLY when the shares are headed straight down like this they don't just auger straight to zero.  Bankruptcy is a process and there are people who are working like crazy to avoid it even it is eventually unavoidable.  Thus, straight down (or straight up) is generally a sign that there will be a very trade-able reversal soon.