Markets love to surprise. The latest example of that comes courtesy of Palantir., Inc.
We sent our Stocks Flash subscribers an “up” alert for PLTR on February 13, when the stock was trading at 117.73. It was this bullish Elliott wave count that prompted our decision:
As you can see from the chart above, EWAVES, the engine behind our Flash services, had labeled PLTR at the start of a wave 5 rally to new all-time highs.
The chart below shows you what happened next.
Right after we sent out that “up” alert on February 12, at first PLTR dipped, which gave us a scare, but then the stock recovered and over the next few days, kept making higher highs and higher lows – the definition of uptrend. All along, we kept raising what our Flash Services call the “cancel alert level,” the price point where the bullish view would get invalidated.
Our last adjustment to the cancel alert level came on the morning of February 19, when we raised it to 123.18. It was also the day when PLTR made a new 52-week high. PLTR came off that high, triggered our cancel level, and the alert was closed.
And then, just hours later in the afternoon, PLTR nosedived:
As I’m typing this the day after, PLTR is down another 10% on the day. The news is blaming the sharp selloff on the report of cuts to military budgets, etc. – like they were a surprise to anyone!
But as Elliott wave fans, we know that the news only serves as a handy backdrop to the market moves.
The real driver of price trends is the collective psychology of investors and traders. That’s what Elliott waves show in price charts – and that’s what EWAVES labels for us, helping us anticipate what’s next.
PLTR remains on our Stocks Flash radar. We’re looking forward to the next alert. We hope you’ll join us!