About halfway through this long article defending the bear case, I discussed the possibility that $AMC was in distribution. Part of that analysis depended on the unlikely way of counting the structure impulsively.
But now let me demonstrate to you the power of recognizing that many individual names may be in—strictly speaking—corrective structures, and yet still go way, way up. $AMC happens to be an excellent example.
Here are the charts on this stock from that article.
Point #1: it’s impossible to count it with any integrity as an impulse to the upside. If we’re in some kind of four, it’s just much, much, much too big here in time. It should have lifted off ages ago and it hasn’t.
The bearish alternative was of course a series of ones and twos to the downside:
However, if we accept the view that we’re in corrective patterns (but still going up) that I just defended in this article, we are free to acknowledge that this stock, like the U.S. indices, may be in a 3-wave pattern, too. And maybe this long sideways action, like the indices, has been a B. And it would look like this:
To give the whole structure the right “look,” I think it would have to shoot up to one of those upper fibs. I know…I know…it’s 1000%. I know.
And the long-term structure counts very well as a single flat. And perhaps cycle (yellow) c takes it to zero.
Note: When articles are first posted, most of them are made available only to my Patreon supporters (I do try to publish some public posts on occasion). Over time (usually after a period of a few weeks or so), I make all of the work public. To gain access to my work when it is produced, please consider becoming a patron. More information may be found on my About page and on my Patreon page. In a nutshell, patrons of any denomination (you get to pick the amount) will be able to read my weekend analyses, Tier 1 members ($20/mo.) get access to all of the articles I write, and Tier 2 members ($35/mo.) get access to those, plus counts on other instruments and my Discord chatroom.