CMG, SWCH updates 08/16

CMG: For those who’ve been with me for a long time, you probably recall that CMG has most likely put in a cycle-2 low and is now working on its’ first impulse wave up off that low. It counts best as soon completing this wave-1 up. Resistance is at the prior long term uptrend support line (what was support may now act as resistance) and money flow is deteriorating at these levels (MFI14, dotted red arrow). But the MACD is still on a buy and pointing up, so we should expect higher prices still. This fits with the more detailed view (see daily chart below)

CMG monthly

The daily chart has minor-3 of intermediate-v of major-1 most likely complete. A wave-4 should now be underway, followed by a wave-5 to new highs to complete major-1. Alternatively major-1 already completed, but i find it less likely as then a wave appears to be missing (minor-2 took almost a month, so I expect minor-4 to be more than just a 1-day affair)

CMG daily

*************************************************************************************SWCH: Doesn’t have a whole lot, other than a steady decline since it’s IPO last year (again another reason not to buy IPOs) and price is now closing into the 61.80% retrace (24.90->0), but can always go lower. Hence, the white-box shows the ideal target zone for a much more meaningful bottom. But, since price is below its 50d SMA (blue) and below its 200d SMA (white), it is in a bear market and there’s no reason to long it. Don’t try to pick bottoms, wait for the trend to reverse and trade the trend. Right now it’s down and not up. The trend is back up when price is >50d and >200d SMA. KISS 🙂

swch daily