Summary
The Fundamentals are pretty terrible, but it meets most of the criteria for a power play and fundamentals aren’t a big issue for these. There are two concerning things. First, we are not in a bull market and, second, the sideways movement out of the explosive move has lasted more than 6 weeks. It’s currently on week 9. I think the fact that we aren’t in a bull market is the most concerning thing about this, or any power play. That fact may lessen the chances of success, but it doesn’t mean it can’t work.
Stage Analysis
The explosive move was the transition from Stage 1 to 2. Prior to that, Stage 1 was over a year at 59 weeks. Within that time, it stayed in a relatively tight range of less than 40%.
Technicals
The explosive move was 123.64% in just over a week, on the highest volume ever recorded. Since then, it’s gone mostly sideways for the past 9 weeks, which is a little longer than the criteria call for. Its widest range in that time has been less than 14% and has tightened up to just under 7%. Its showing nice VCP price and time contractions. The RS relative to the rest of the HC sector is increasing and price is contracting higher as the SPX has been pulling back.
Power Play Criteria
| Bull market | NO. |
| Early part of stage 2 | YES, explosive move was transition from Stage 1 to 2. |
| >= 100% price move on huge volume in <= 8 weeks | YES, 123.64% in just under 2 weeks. Volume was most daily, and weekly volume ever recorded. |
| Prior price action was dormant | YES, Stage 1 for over 13 months is a range of less than 40%. |
| Sideways price action after the move | YES. |
| Sideways action corrects <= 25% in <= 6 weeks | YES and NO. It has been moving in sideway with the biggest correction of less than 14%. It has been moving that way for more than six weeks. It is currently on week 9. |
| VCP in sideways move unless the whole move is <= 10% | YES. The price and time contraction has steadily gotten tighter for 13.89% in 10 days to 6.47% in 2 days. |
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