NSP dropped 8% this morning after posting earnings so I closed my short position at a nice profit. Trade details to come shortly...
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ORIGINAL TRADE SETUP...
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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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.
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