Hamilton's E-Wave Analysis

S , Sprint Nextel Corp. update.

S 2011 both

This mobile telecommunications company looks much better on a semi-log scale than an arithmetic one. The two down legs look a lot more equal. In any case after a drop from $75 to $2, it is reasonable to assume the “correction” is complete, any further and the stock is gone. The more detailed chart below, shows a good opportunity, at least for those that do not mind the odd, serious, gamble.

Invariable after a large drop there is a rebound. Typically the rebound will , at the very least , take the form of an A-B-C. In this case we had the A, from $1 to $6, then the B as a triangle that has taken almost two years and may need just a little extra pull-back to complete the e-leg in the triangle. Then C should propel the stock to about $9 (equal to A) and this may take about 6 months. This is the time wave a took and it is also precisely where the apex lies. After that the stock can continue to the moon or go off the board, neither matters because by that time you are out of the trade. Buy at $4 and stop at $3.75 and sell at $8 oco. If the stock breaks the upper triangle line and trades above wave b (about $5), it should simple be bought.  Put the sell order in  immediately after being filled. Sure the stock could go to $25 or higher but we only want the (almost) risk free part. This could all happen in a very brief period of time, therefore it is essential to put the sell order in in advance in order not to miss it.