RKT

업데이트됨

By the Elliot wave theory, I'm seeing a 1-2-i-ii count which indicates a potential wave 3 - the strongest and longest impulse wave. Rocket Loans is still a young company, but an EPS of 33.05 shows just how profitable they are. Will buy on the breakout of the ii correction.

노트

Got stopped out of my initial position. I often keep very tight stops, and by my technical bias, I was seeing a descending triangle which caused me to cut at 20.8. It is looking more like a downwards channel now - still normal behavior for wave 2's as sentiment is still negative in this period.

The trade thesis is still intact. Will re-enter on a down trend breakout accompanied with strong green volume.

노트

Until wave 2 pulls back all the to the start of wave 1, the count is still theoretically valid. Although I'll admit, I'm a little disappointed with how much of a laggard this stock is acting despite the bull run in the general indices.

노트

RKT now showing signs of life. Full transparency, I am no longer sure about my wave count. By my original count, the 1-2-i-ii wave up is now invalidated, but personally, I see this going one of two ways; 1, my wave count for the minute cycle is wrong though the 1-2-i-ii count is still valid, thus RKT is finally going to start its impulse wave moving up; or 2, the initial wave count is right and prices will just continue to consolidate within the current sideways trend.

There is a potential catalyst. As per Marketbeat, RKT has a short interest of about 39%. If prices continue to surge higher on the positive earnings announcement last Feb 25, this could further propel prices higher and squeeze out some short sellers. Only time will tell.

노트

I was able to get a position a bit later than I would've liked. Nonetheless, I was able to buy in on Monday.
According to backtested probabilities in Elliot wave theory, the minimum (and highly probabilistic) target for this impulse wave (wave 3) before any big corrections is around 45.01.

Smellythedog