HPQ update

hpq may 23 2014 bHPQ  May 23 2014

We did do well recommending this stock at about $12.50, but sold too early (as always) and still made a gain of about 40%. That could have been 300% but that is water under the bridge and we did mention that the possibility of much higher prices existed.

Today we are approaching the 62% retracement level on the “good” news that the company might fire another 11 to 16,000 employees. Presumable these employees were just twiddling their thumbs all day without any contribution to the bottom line.

The EW pattern is decidedly ambiguous. For the moment we will assume that the high back in 2010 was the real top and that , from there, the stock traced out an initial 5-wave sequence down followed by an a-b-c back up. There are potentially a few dollars left to go but we are inclined to sell now. Both the RSI and the MACD are, and have been for a long time, pointing down.