SW, Sierra Wireless, update

SW feb 6 2016

This one we got wrong. It looked as if a 5 wave sequence was complete back in Nov. at around $19. In retrospect the action from that point on has the looks of a triangle. Given its size it does not fit well with the notion that it is a 4th wave in the 5th. More likely it is a 4th of the entire move. It has already travelled far enough but could continue to the trend line at around $14. By that time it will have lost 76%. If this is going to be a much larger A-B-C than that is already more than enough and the thing should bounce.

Alternatively, if the count is completely wrong, then we are probably looking at a double zig-zag correction which should in any case be complete not far from here.

The fundamentals were mixed with a larger top line but also a larger loss, but not one of large proportions. Stocks normally do not fly straight into the ground at this speed and normally there is a good bounce before the crash, if that is going to happen. It is now more of a buy then it was a few weeks ago.