TRADER’S CLASSROOM BY JEFFREY KENNEDY

Picking Up the Pieces

Market: AAPL, TGT, HSY, and ACAD Monday, March 3, 2020

So what can we learn from last week? First and foremost, we can learn the importance of managing risk. The
second thing I believe we can learn is that while danger is real, fear is a choice.

Let’s first look at Apple Inc. (AAPL). In January we observed that wave patterns were very mature within their pro-
gression. Thus, the upside was limited and the next significant move to look for was a fourth-wave decline. Prices
have since sold off, and right to the 50% retracement of wave 3. Subsequent price strongly argues that wave 4
is complete and that wave 5 of (3) is now in progress to $350.00 or better. Simply put, last week’s price action in
Apple has done little to change the operative Elliott wave outlook.

Now let’s take a peek at Target Corporation (TGT). Back in January, wave patterns called for another round of
selling to give us three waves down. Similar to Apple, Target fell very close to the 50% retracement of wave 3 at
$99.67. Since critical support levels and significant trendlines in Target remain intact, we’ll stick to the operative
wave count and look for one more run up to new highs in wave (5).

While price action last week did little to alter wave patterns in several issues, that can’t be said for all markets.
Some stocks I’m looking at are toast…others we need to be a little gentle with. For example, Hershey Foods Cor-
poration (HSY). Going back several months in Hershey, we’ve been looking up to $170.14, potentially $184.34.
This view needs to be put on hold because last week’s price action negated the operative wave count. The most
likely alternative is that a flat correction is unfolding from the September 2019 peak. If so, then we’ll experience
further decline in the days and weeks ahead as wave C of (4) unfolds to below the wave A extreme at $137.72.

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770-536-0309 • 800-336-1618 • FAX 770-536-2514 © 2020 Elliott Wave International
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PO Box 1618 • Gainesville, GA 30503 USA customercare@elliottwave.com

770-536-0309 • 800-336-1618 • FAX 770-536-2514 © 2020 Elliott Wave International
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PO Box 1618 • Gainesville, GA 30503 USA customercare@elliottwave.com

770-536-0309 • 800-336-1618 • FAX 770-536-2514 © 2020 Elliott Wave International
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PO Box 1618 • Gainesville, GA 30503 USA customercare@elliottwave.com

770-536-0309 • 800-336-1618 • FAX 770-536-2514 © 2020 Elliott Wave International
Notes:

PO Box 1618 • Gainesville, GA 30503 USA customercare@elliottwave.com

770-536-0309 • 800-336-1618 • FAX 770-536-2514 © 2020 Elliott Wave International
Notes:

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770-536-0309 • 800-336-1618 • FAX 770-536-2514 © 2020 Elliott Wave International