The usual then (13 Dec. 2011) and now charts;

EW like any other approach, has, from time to time, little oddities that should not really happen. In this case the e-wave went lower than it should have gone. Otherwise the call was pretty well dead on. We would sell here and even go short.

We did quite nicely with this stock (see previous blogs). We got out too early with a 50% gain and then warned that it had a little higher to go. Well here it is about $5 higher at $90 AND it has a nice 5 wave sequence up in which wave 5 appears to be the extended one having equalled  waves 1 and 3 combined (it is a semi-log chart!). It looks like it is well done, however , being so close to an even $100 makes this stock very susceptible to the Mnt. Everest effect as the momentum players give it an extra nudge. A sell between here and $100 but with a strong preference for now.

c

Back in December of 2010 we expected this stock to rise by about $40 (see previous blogs). It almost did exactly that but is now threatening to double top. We would always sell at that level as a matter of course and certainly after such an incredible move on nothing in particular. Various counts could be applied to this stock but almost all would suggest that it is a sell rather than a buy. Time to not own this stock and maybe even short it if it should move up just a little bit further. We previously suggested getting out at about $ 75, good for a 50% gain.

The best count, 95% sure, for this up move is that it is a B-wave.

Then and now charts, then is Dec 13 2011, half a year ago;

At the time we pointed out that we preferred the upside resolution of this triangle, but if wrong the stock could go down equally fast. This triangle is a B-wave triangle in a wave 2 correction. The target indicated by the arrow is a little above $80. We have changed the internals of the triangle by lengthening the c wave as otherwise the e wave would drop below the c which is impossible. This also had the effect of delaying the thrust up by a week or two. Otherwise it is pretty well as predicted. The high of $75.17 is close enough, certainly now that the thrust itself appears to have the necessary 5-waves. This is how it all fits the big chart;

This is an instructive chart, as we have a triangle in the 4th wave position followed by one in the B-wave position. Notice that the patterns overall are very similar. For those that are interested in such minutia, we point out that the first triangle could just as easily be a 4th wave correction followed by a “wedge” that has a very small 5th wave. Also the A wave down can be viewed as either a 5 –wave affaire or an a-b-c. The first would suggest a zig-zag and the second a flat. We are already close to double topping so a flat looks better. The end result should be an A-B-C correction in which, and this is quite common, all three legs are approximately equal as vectors. The target is about $35/$28. A 61.8% loss of the entire value from the top is around $31, about the middle of that range. Sell if you own it.