Long idea Square (SQ) continues to prosper, but I would note that it’s getting pretty close to sealing an important gap. I originally offered this idea a month ago, and it’s up about 25% in just one month’s time.
So even though charts are totally without merit, technical analysis is a hare-brained fantasy, and Fibonaccis are a joke (at least according to the upstanding citizens who swing by Slope for time to time for no other purpose to pee on my raison d’etre) , I wanted to follow up on my post from last night. Because of a loving, merciful God, crude is, in fact, falling to pieces, down about 4.2% as I am typing these words, completely in line with what Fibonacci (and my trendline, shown in green) predicted:
The blue tint is the Fib level, and it must be broken for the next phase to begin. If it does, we can look forward to the green tint as the drop zone, with about $42.25 as our next target.
Of course, that’s only if you believe this nonsense.
Back on May 8th, I did a video of short ideas, the first of which was Fiesta Restaurant Group, which at the time was about $33. It has lost about one-third of its value since then, but I’m holding on. I think it’s got a lot farther to go (but I’ve obviously tightened my stop up).
I guess my prediction that DXJ would fall (made on April 20th) had some merit to it; thanks, Head and Shoulders! I confess, I am envious of a market that can GO down and STAY down (as I glance over at the SPY, which is down fifteen hundredths of a single percentage point as I’m typing this).