First a little look back to July 11, 2011; here is that chart (you can retrieve the entire blog using STJ in the upper corner);
We were , once again , fascinated at how well markets are able to almost perfectly recreate certain patterns without much regard to the “noise”. The first target, of course would have been about $34, much further down after that. Here are the updated charts;
The stock did exactly that. The low was at $33.54. My (educated) guess is that the first wave is complete and that we are doing 2 right now. This wave 2 could, repeat could, continue to say $44, the apex of a triangle. I am sure some of you will think that this count cannot be correct as wave 3 looks to be the shortest. However if you look carefully it will become clear that it is indeed the longest. Stay out! By the way, the p/e is still well above 30 according to Bigcharts.