We discuss the sentiment cycle from time-to-time since Option Addict graced the idea upon us and I find value in envisioning where we are in the cycle. It gives some perspective into how my comrades and competitors may be feeling at any given moment.
Unfortunately for RVLT longs, it appears we’re working through the rough side of the sentiment cycle. If you love a business model, you sometimes have to ride through some crummy conditions while the business proves itself.
Therefore, I won’t candy coat what I think RVLT could do in the intermediate term, instead I’ve mapped out exactly how I envision it aka brutal, but eventually victorious. Trade accordingly:
Thanks Raul! I am interested in the action around 3 bucks not from a chart perspective but from the human idiopathic fixation on whole numbers as RVLT at this point is more reactive to sentiment. I would like to see the stock dip 2.97 and bounce over 3 several times then recover .3.20’s before I angled in to a couple thousand shares. If it breaks high 2.90’s I think tou see low 2’s and possibly a Zombie stock.
CCB decides to put words to the above chart lol.
Three is a good number. Always has been, always will be.
OOOooh Yes..those mighty fine 3’s
I ain’t that smart!
Raul, you know I’m into these sentiment charts, and that RVLT you drew up could be mistaken for a Renoir. What gives me pause, is looking at the last 6 months of the SPX daily. It seems as if we’re sitting on the hump just above “Subtle Warning”. Your opinion/take on this, interests me greatly.
Could be we’re halfway through disbelief, and we may experience a steeper correction.
The conflict I have is really how tasty this dip looks on the $SPX weekly.
I think it’s hard to look too far out on the S&P, at least for me, because I trade inside the daily bar with my profiles.