The year-long correction and consolidation looks like an 2, and offers compelling a .
As of right now it is being rejected by the 50 and 200 ma, so it is still very risky. The consolidation could extend the better part of 2008, producing a double or triple combo wave.
- A stop below support would allow one to ride the noise and see if it plays out, but position would have to be tiny.
- A stop below the 2/6 would be 10% risk.
Because it is below the 50 and 200 MA, I'll wait and see if it declines further.
A tag or stop run of support would provide a very good risk-reward ratio.