Sprint Nextel started its move, apparently the two parts want to split or something like that. At $5+ we got to a level above the d-wave. That combined with the proximity to the apex of the triangle (relatively speaking), makes it virtually certain that the triangle is done and now we should move up in C. Just as a reference, (this does not have to be so!) the high point is usually reached perpendicularly above the apex, and at a distance equal to the “mouth” of the triangle. In this case that would be about $8 in two to three months. At the very least, for this to be a A-B-C correction the C wave should reach the high point of A, about $6. Keep an eye on it.

First recommended at about $2,40 in March of 2009, sold after a solid double but still maintaining a likely target of $8. It met that target quite nicely and then started treading water for about a year. Then we got the second up leg. Today all three waves, A,B and C are pretty well vector equal. C is a little short so it may yet continue its climb and may add a dollar or so over the next month. You can hope and wait for that or simple exit the position .

This mobile telecommunications company looks much better on a semi-log scale than an arithmetic one. The two down legs look a lot more equal. In any case after a drop from $75 to $2, it is reasonable to assume the “correction” is complete, any further and the stock is gone. The more detailed chart below, shows a good opportunity, at least for those that do not mind the odd, serious, gamble.

Invariable after a large drop there is a rebound. Typically the rebound will , at the very least , take the form of an A-B-C. In this case we had the A, from $1 to $6, then the B as a triangle that has taken almost two years and may need just a little extra pull-back to complete the e-leg in the triangle. Then C should propel the stock to about $9 (equal to A) and this may take about 6 months. This is the time wave a took and it is also precisely where the apex lies. After that the stock can continue to the moon or go off the board, neither matters because by that time you are out of the trade. Buy at $4 and stop at $3.75 and sell at $8 oco. If the stock breaks the upper triangle line and trades above wave b (about $5), it should simple be bought.  Put the sell order in  immediately after being filled. Sure the stock could go to $25 or higher but we only want the (almost) risk free part. This could all happen in a very brief period of time, therefore it is essential to put the sell order in in advance in order not to miss it.

S is following the script precisely so far, which is encouraging. The e leg will soon be complete and then the stock should shoot up. This will be negated if the stock drops below the low of the c wave in the triangle, at ,say , 3.50/3.75.