See previous blogs. Hit the nail on the head with this one, except for the last prognostication. The stock should double in the next two months and so far it is not even close. The triangle remains as clear as a bell so a double is still a very credible call.
We have been dead wrong on Romarco Minerals. It is a little late, once you get to 50 cents there is not that much room left after all, but with the benefit of hindsight it now looks like the count should have been a double zig-zag, a-b-c X a-b-c. This is a complete correction which 5-waves down never is. This is very much a binary situation, they either get the needed approvals from US Army Corps’ by way of an Environmental Impact Statement or they don’t. The expectation has always been that they will and if that happens the stock should shoot up. Unfortunately it will take time as the decision is not expected before Aug 16, 2013.
The drop was not as violent as anticipated, but still about 20%. The retracement, back almost to $30 is huge but we have probable entered the 3d wave down so things should pick up (down).
Our guess was for a little under $50. Perhaps it will try it one more time but this stock is a better short with about $25 to the downside for starters.