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DirecTV Showing Divergence With Upside Potential

|Includes: AT&T Inc. (T)

DirecTV makes up 1.4% of the Nasdaq 100 and is a fabulously clear real life example of how the crowd moves, and Elliott Wave maps, in predictable cause/effect structures.


This consistent divergence between higher highs in price in the top Ndx stocks in the last few years vs. lower highs in stochs (crowd energy/momentum) historically results in large, multi-month/year corrections. We've been discussing this divergence with WaveBOOM members for some time now. Together, the fifteen stocks reviewed this week show waning upside energy, and herd conviction, as the black boxes push higher, and create an upcoming vacuum of buyers. These are the conditions needed to trigger "shocking selling" behavior, like that of '08, when cheaper prices led to cheaper prices, until earnings "caught down" to justify the price declines of the prior year of selling. Deja Vu…