CLC, CLM Healthcare update (by request)

clc feb 2013

For more than a year I have not updated this stock. The reason is quite simple this – I have no idea where it is going. The beauty of EW is that you focus on those things that are clear and ignore everything else. This approach obviously contradicts that of the average research analyst.

Anyway this stock dropped from $17 to $6, roughly the normal 2/3 that one might expect so on that basis is might be a buy. Also the pattern could be counted as an a-b-c X a-b-c which is a completed correction so the next move should also be up. But , if there should be a 5-wave sequence down (a different count) then there are only 7 or 8 legs so far so one more leg down should be forthcoming. I have personally never understood how you determine what is correct , so I avoid it.

Best guess would be back to the other side of the channel and then down again. I am not sure that it can go that far though. $8 or so “looks” toppish.