Herbalife, HLF, Elliott Wave Fractal Comparison. Possible wave 4"Beautiful Pictures from the Gallery of Phinance", Robert R Prechter Jr.
Copyright 2003 Robert R Prechter Jr.
Pages 18 & 19
The drawings I've added to this chart are directly pulled from page 19 of the book mentioned. The original charts referenced are the DJIA from 8/24/1921 to 09/03/1929, and the second chart in the comparison is the DJIA from 12/06/1974 to 01/14/2000. The similarities are many.
The reason why I took interest in this chart is because I noticed a huge boom in social media marketing by Herbalife distributors, pushing their products and heavily recruiting new customers and new distributors. The chart immediately reminded me of the Elliott Wave Fractal so I decided to compare. It looks good and I am assuming a long to somewhere near the $80 - $85 range. I don't want to get too specific but I expect the final waves (4 & 5) to end sometime near the end of 2019, roughly 12 months from now.
HLF trade ideas
Herbalife - Deceleration of highs - Bulls running out of steam?I'll be honest - I've been wanting to find an excuse to short Herbalife for a while now. and the deceleration of highs is starting to suggest a stock about to take a breather from gains for a while - Don't think we'll see a collapse - but my money is on seeing $50 before we see $60
Short/Puts on HerbalifePlay the gap
Look left!
8/18/2017, red doji/spinning top
Conviction:
Gap finally gonna retest!
Tweezer top daily 7/26-7/25... to the tee! ;) $53.52
(7/10 @12:30 on 4 hr... caution gap on the up side... so adjust stop as needed)
Price action ready to break the cloud... and you know what that means!
MACD showing negative/downtrend
Stoch downtrend toward overbought
Overall bearish sentiment in market
Fed raise rate, stock market inverse
Earnings Aug 1st... will HRL get the market beat down on earnings...(cough twitter, facebook, banks, etc... see FB gap post)
...and i detest Herbalife... the dreaded emotional trade... HA!
Never shorted a stock
Still learning options
Puts Nov 16 .14/.17/.30 bid/ask/last...
What a bargain $20 per contract...
S/L 53.52... (see note above)
T/P 31.18
R/R 12.91 LMMF$AF
HaveFun/Profit Trading
Nearing confirmation for short, building position alreadyHLF is potentially about to make the 9/20 EMA bearish cross on the daily if price continues down another day or so. It hasn't done this in over a month, where some serious bearish movement followed, and the past month of green has been a bounce from that last downward movement, which I believe is confirming a trend reversal now.
It's on it's second red day below the 50 MA on the daily, and 4th day of red overall.
In addition, the cloud support from the Ihcihmoku is minimal, and would likely be blasted directly through, all the way down to lower MA or EMA support.
Bearing in mind that this is a heavily manipulated stock and thus this certainly is not a sure deal, I think it's primetime for the bull manipulators to get out and protect their extremely massive profits, this could be going sideways but I doubt it, and I think the R/R is too big to ignore. Especially since every shorter in the market is aware of this stock, and is awaiting confirmation, which I think for many will be the 9/20 EMA bearish cross confirming all the other bearish indicators along with it.
I am short via options and a normal short position, I plan to take profits around $48 with the intention of re-shorting if the bounce paints a bear div confirming further down.
If these stays sideways all month I will likely exit with the intention of finding a good entry on a very long term option (6-12 months).
Let's get a shakeGood chance to go short here. Unfortunately for the way it has moved the last few months it is difficult to measure the levels. Therefore I will have to move carefully.
What the information indicates is that it begins to reach an area of high resistance. This is an early call so for the moment I do not have clear targets, only the signal of the resistance area marked by the angle, it could give me an early position quite comfortable and safe against "Plan B", which indicates that this stock could reach the area of 130 next year.
Little by little I will see how it develops.
HLF Over ExtendedThis MLM stock can only do so much to keep shorts at bay, it's done everything legally possible to get rid of shorts, they even squeezed Ackmans` $1 Billion short position at the top. The stock is over extended and there isn't much more HLF can do to manipulate the stock higher, they've already done buybacks, now a Dutch auction, Icahn is loaded up on HLF owning over 30% of the company, which he will most likely be unloading soon after the auction.
M top on the daily timeframe, Weekly indicators topping, overall market getting more volatile and this stock is the the biggest fugazi out their besides LFIN.
Ackman wasn't wrong, just his timeframe was off, along with Icahn and HLF being able to easily manipulate this low liquidity/ market cap stock . The manipulation can only last so long though, a fair valuation of this stock is in the $30-$0 range.
Full disclosure- I'm short otm puts.
On short squeezes and market overreactivityHerbalife's got about a 18% short interest out of the floating (shortsqueeze.com)
P/E ratio is reportedly greater than 35 (NYSE avarage is about 25, with an historical avarage level of about 20)
White circles depict unsuccessful short session that led to short squeezes; red circles depict successful short session.
These periodicity is really dictated by corporate action (stock buybacks specifically) that has greatly driven prices to actually outperform its index.
It is really freightful to short this shit now, given how its beta (~0.2) reacted to the whole market (poorly) making this stock actually a great investment throughout the last months. Can this continue? Not sure. Surely, the overall equity market is now a bit bearish and in these circumnstances linear correlation tend to higher levels (hence raising betas and aligning perfomances within the index).
Technically speaking the stock is overbought.
HERBALIFE: big short opportunity We think it's time to activate a big downside bet on the herbalife -0.44% title. The signals are many, both technical and fundamental.
Technical analysis:
- divergence between the price and the CCI (yellow dotted line): the price continues to rise but the trend of purchase begins to decrease. This is a symptom of the weakening of the trend.
- 100 $ is an important psychological threshold, we expect several profit taking
- Japanese candles highlight 3 doji in the last 3 days, a precursor of a trend reversal.
- the volumes of buying are decreasing.
From the point of view of fundamental analysis we believe that herbalife -0.44% is just a bomb about to explode. In addition to being based on a pyramid scheme, it offers an out-of-fashion product with several more fierce competitors. This short position could really end with a profit of 70/80%.
The first strong sell signal could be a daily candle wich close below the body of the last 3/5 candles. The first target is certainly the threshold of 80 dollars. Broken this level there is a good chance of seeing the burst of this bubble.
Greasy businesses must go downShort interest is 30% of floating. This thing has climbed upon short squeezes (similarly to TSLA, of which shares the high short interest) but that cannot last too much. Ackman is so damn right about this thing, I am sad he could not actually monetize this greasy business. But maybe the markets know better.
Trade skeptically