S , Sprint Nextel Corp. update.

S 2011 both

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.

s 2011 s

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 . 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.