INTC: Still Dead Money ~ The Risk Averse Alert

Tuesday, April 13, 2010

INTC: Still Dead Money

With all the after-hours excitement surrounding Intel and its Q1 earnings report supposedly showing the business "firing on all cylinders," it is high time someone distinguish the business of manufacturing microchips from the business of investing. Here's why...

company chart (INTC)

From its Y2k top we see a 5-3-5 wave down to October 2002 bottom. Then, from there a 3-3-5 corrective wave up — a counter-trend move whose final leg (i.e. the fifth wave of five waves up from March '09 bottom) appears set to be completed in response to the firm's Q1 earnings.

So, from Y2k top it appears Intel has formed waves A and B of an A-B-C corrective wave, with the worst of selling still yet to come. The question is, then, what good is a business firing on all cylinders when from an Elliott Wave perspective the trajectory of its stock price continues pointing down?

One good decade dead money deserves another.

Fast Money
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