See also previous blogs some absolutely brilliant! The stock got to our target of $36 and then some. We are now at the 62% retracement from roughly $55 to $10. In the big picture it is harder to figure out where we are but the stock has only ever been higher than this for about 2 years in the past 13. A good time to step aside.

We did do well recommending this stock at about $12.50, but sold too early (as always) and still made a gain of about 40%. That could have been 300% but that is water under the bridge and we did mention that the possibility of much higher prices existed.

Today we are approaching the 62% retracement level on the “good” news that the company might fire another 11 to 16,000 employees. Presumable these employees were just twiddling their thumbs all day without any contribution to the bottom line.

The EW pattern is decidedly ambiguous. For the moment we will assume that the high back in 2010 was the real top and that , from there, the stock traced out an initial 5-wave sequence down followed by an a-b-c back up. There are potentially a few dollars left to go but we are inclined to sell now. Both the RSI and the MACD are, and have been for a long time, pointing down.

If you followed the advice religiously , you would have bought at $12.50 and sold yesterday at $18.21 on the open, a gain of 45% in three months. We can now count five waves up which is promising for the future, but not for the immediate future. It is now time to forget that these stock even exists and wait a few months before looking at it again. We do note that the potential for this stock to rise to about $30 exists! Not in a straight line!.

Sell the rest between $17 and $18, that is good for a quick $5 on $12 or about 40%. May go higher but may also have completed a nice a-b-c. In any event the RSI and MACD look pretty overvalued for the moment.