AMD, BAC, CMG updates 10/25

AMD: Down hard on earnings (actual 3rd quarter earnings were stellar YoY, but the forecast for next quarter was lower and thus below expectations and who wants to own a stock of a company who expects to sell less instead of more?!).  That said, we can label yesterday’s high as (red) intermediate-b/ii (it’s at this point unknown if (black) major-c will become 3 or 5 waves; respectively); and the downside target zone (colored box) I’ve had since the late-September update (see here) remains. Since then AMD has made very little progress until yesterday. Typical of a correction. Price does need to break below the August lows to ensure further downside.

AMD

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BAC: First the big picture. Price is in (green) minor-3 of (red) intermediate-iv of (yellow) major-3. Thus there’s still some upside left before a larger correction (major-4), back to around $22 will happen. But, question now is where exactly is BAC in it’s price move?

BAC

When we zoom in we can see price is either in minute-iv of of minor-3, or all of minor-3 has topped right at the typical 1.618x extension. The advance off the minor-2 low is a bit tricky to count due to the mid-October drop, which could even be a micro-2 of minute-iii. Hence, the devil is as usual in the details and we simple need to let this one develop more to tell us exactly where price is. If minor-3 than minor-4 should ideally drop to ~$26.00. If minute-iii than ~$27 should hold for minute-iv.

BAC-2

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CMG: Can’t seem to sell even a cheese quesadilla anymore, so investors dumped it again (I am surprised to see anybody still owning CMG after an already >50% haircut…). That said, price is now en-route to the next Fib-retrace level: the 76.4% at around $208.

CMG monthly

There’s clearly a nice ABC pattern off the Cycle-1 high, but for now price looks weak on the monthly chart and looking down is what’s the right direction to look at.