This Elliott Wave blog is dedicated to sharing Fibonacci ratios and other technical analysis for forex signals, index futures signals, options signals, and stock signals. Elliott Wave Principle puts forth that people move in predictive patterns, called waves. Identify the wave counts, and you can predict the market.
Thursday, June 30, 2016
Elliott Wave Option Signals - Short NSP
Insperity Inc. (NSP) has been on a huge monster rally the past several weeks but it has become quite choppy and is starting to roll over to the downside. Today's sharp pop is just an exhaustion rally with the tired and tapped out bulls throwing everything they have at it today for one final push. The next move of consequence should be to the downside. I show a large Intermediate "flat correction" unfolding with today's rally part of wave (B) which should soon give way to a strong impulsive decline for wave (C) towards Fibonacci support at the $66.72 level (38% Fibo), which is also near the previous Minor wave 4, another typical draw for larger degree corrections. So I went short with a put spread. Here is the trade:
Buy to open NSP Aug 19 70/80 put spread at $4.13
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