Today’s selloff is a little troubling.  It may change the weekly cycle count.  Because of the large day range of 1.20 and the way it was rejected at 15.55, it prompted us to double check the weekly cycle count.  We want to know with reasonable confidence about the top price at 15.55.  Is it an important top that will be followed with more selloff?  Or is it a quick selloff that will dissipate?

Previously we thought the weekly cycle low was at 9.42 on 01/18/2017.  So we are in the 2nd daily cycle, 6th week of the new weekly cycle that started on 01/18/2017.  But today we had a large day range selloff.  Today’s selloff had more intensity than the selloff against 12.42 and 14.27 tops.  It is unusual to have this kind of selloff at the early stage of the weekly cycle.

Unless we are in the alternative weekly cycle count.  The alternative weekly cycle count will place today’s location as the 16th week of the weekly cycle that started on the week of 09/13/2016.  Today’s selloff is more likely to happen in the 16th week (late stage) than the 6th week (early stage).  So we must have an open mind about our long position.

One thing is very certain though.  It is 6th day in the daily cycle.  That means the 15.55 target will be tested again. We don’t know if it will be exceeded.  So we recommend our readers to get ready to liquidate the long position against 15.55.  We have had a good run from 10.25.  So it is prudent to take profit against the warning.  There are millions of shorts circling around AMD.  There are quite bit of people who don’t believe the AMD comeback story.  There will be many opportunities with AMD because shorts are making the long trades more exciting.