MS, Morgan Stanley update

MS - dec 14 2011

Earlier this month, even when it was at odds with the count, it was worth contemplating whether or not MS was in a (4th wave) triangle. A week has gone by and so far at least, the stock seems to be following the script. All legs in a triangle have to be a-b-c’s, three wave affairs. That , arguable, appears to be the case, or at the very least it could be possible. Also, normally the legs relate to each other by a  factor of 0.62 alternatively, so c should be about 2/3 of a and d 2/3 of b. So far that too is the case. If this were to continue than chances are that we do , in fact , have a triangle. If so we will dive down to about $7 around New Years and then bounce  right back up to $16.5/$19.5  None of this may happen, but if it does you can be prepared by having a great trade for the beginning of next year.