KSS, Kohls Corp.

kss aug 13 2015

Here is a schematic depiction of this apparel retailer. We show it for two reasons, neither of which have anything to do with you owning this stock, which we do not expect that you do. This is a great example of why you should, always as a matter of course, sell on a double top. Twice you had the opportunity to sell at around $80 and saved yourself a lot of grief. So far only around 30% the second time – it dropped 10% today alone – but if the EW labelling is anywhere near correct that will soon become 70% or more.

Secondly, it is clear that it took a disproportionate amount of time to complete the b and c waves of the B wave relative to the previous low of wave 4. Everything is moving in slow motion and this is primarily because investors are no longer looking at the particulars of individual stocks. They prefer to be guided by macro economic factors such as the Fed’s next move , the dollar’s value and so on. This only delays the inevitable.

Below we show alternative which is only of academic value now as all this has passed. It is in red. In this alternative wave A is deemed to have started in 2002. Wave B in that scenario is exactly the same length. C is starting now. I have no idea if this is a valid interpretation nor how useful it would have been in real time, as you would be looking for a 5th wave from the 2008/9 low. That could theoretically still happen all though overlap seems to have already occurred.

kss aug 13 2015 alt