TRADER’S CLASSROOM BY JEFFREY KENNEDY

What To Do Next?
Market: CMG, LMT, SAM, and EQIX Wednesday, March 4, 2020

When you’re overwhelmed, it’s sometime useful to step back. For example, last week’s price action looks quite
devasting from an intraday or daily perspective…and rightfully so. However, if we step back and look at weekly
or monthly price charts, then not so much. In today’s episode, we’ll step back and examine some long-term price
charts.

We’ve been tracking Chipotle Mexican Grill, Inc. (CMG) for some time. In fact, we identified the November 2019
rally as wave five of a larger third-wave advance that began in 2018. Simply put, with five waves up and done, it’s
now time to look for a fourth-wave correction.

Lockheed Martin Corporation (LMT) is another issue we’ve been looking to peak in a fifth wave. Considering re-
cent price action, I would say it has. If we put last week’s activity into a larger Elliott wave context by looking at the
monthly price, we can make the case that the recent decline in Lockheed is just getting started.

Today’s chart of Equinix, Inc. (EQIX) is similar to that of Lockheed Martin. Not only has Equinix finished a five-
wave move up from the 2018 low, but we can make the case that a larger impulse wave is complete as well. If
correct, then the risk in EQIX is to the downside and to $430.23, the .382 retracement of wave 3 (circled).

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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
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:

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:

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:

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:

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

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