Thursday, April 09, 2009

CXM - update

CXM printed $1.89 today, opening the door wide open for $3.50 later this year. I would like to see volume pick up to go into full confidence mode, but the chart below, which doesn't look at volume, is suggesting a 3rd wave UP in place:



Anonymous said...

Thx Allan
Unfortunately i couldn't buy CXM less than $1.80 today on hope the opened door to $3.5 would become real as soon as possible....
Something else, where are we now interms of market? Are we in a fifth wave down or things have changed?


Allan said...

Serge: No changes, just one more weekly bar in the Wave 4 consolidation pattern that I have been tracking for the past three months. The next big, tradable move should be to the downside, but it hasn't triggered quite yet. Sometimes, its best to wait for the market to lead the way.

Anonymous said...

Allan, time to change your tune and go long. EW is not a faith. Its a tool and it looks like its either obsolete or needs to be resharpened.

Allan said...

I don't mind critical posts like this one above, suggesting that EW be focused on the long side for now. I don't agree (but do appreciate the tone of the Comment) as the rally seems long in the tooth, especially when gap-ups cannot move higher after the first hour of trading. The same can be said for the gap-downs we have been seeing. All of which confirms my sideways Wave 4 analysis basis the Weekly charts.

Thanks for the civil disagreement.