stock update 11/16/2015: ADBE, CMG

Please click charts to enlarge

ADBE: What can we say. It’s been tracking very well. We had major 3 to around $88 early August, where intermediate v of 3 formed a classic ending diagonal. Major 4 then retraced 38.2% of all of 3, and now major 5 is also forming an ending diagonal with a perfect 200% target. Of course this can also be a leading diagonal for intermediate i of 5, but let us be cautious instead of greedy and assume the worst: longs be careful!


CMG: We’d hoped it would bottom at the 23.6% retrace of Primary III, but instead it’s seeking the 38.2% retrace, which is even more typical for a 4th wave. Note that that retrace level is exactly at the 261.8% extension of (yellow) major a, measured from b, as such forming a perfect expanding flat: a=b, and c>a. These two Fibs are at around the $560: almost there. Assuming a V=I relationship, Primary V should then target $975, which is in the ideal 176.4-200% Fib zone: typical for a 5th wave.