We suggested a sell at about $600 and were wrong by $150 but that changed rather quickly. Deutsche Bank has a sell on this stock. We either have a completed 5 wave sequence down followed by an a-b-c correction, or we have only completed waves 1 and 3 down and are now in 4. Either way there is a lot more to go.

Originally we thought that wave 4 was a 5-wave move down to be followed by another after a rebound intermission. Now we have to assume that it was not 5 waves but a full a-b-c instead. Having no particular predilection for Mexican food, we have no idea what the secret sauce that they use is. But in any event it is very rare that financial Nirvana is reached through the taste buds. This thing now trades at a p/e of 55X and, more importantly, the chart sports a relatively clear 5-wave sequence over its existence. If our count is correct the next major target, albeit perhaps a year down the road, is around $240 which , coincidentally, also happens to be a 61% retracement!

The usual then, 19th Oct., 2012, and now charts;

At the time the initial 5 waves down was incomplete so we were looking for a further drop to perhaps as low as $220. It did not quite make that but did get close to $233. Had you bought somewhere around that level (by the way you can almost always buy at the end of 5 waves down!) then you would have done quite nicely. We did not calculate a target but had we done so it would have been at the 50 to 60% retracement level which equates to $110 to $130 up, roughly, from the lows. That would be $334 to $366. Now that we are well above those levels it is again time to sell if you have not done so already.

See previous blogs. This probable was the 4th wave up, followed by the 5th down that is not yet complete. $270, or thereabouts,  remains the logical first target. Do not buy it there as the stock could easily continue to around $220.