Royal got hit pretty hard on account , I understand, of their total return swaps. I have no idea how big that is but it is in line with what hit Manulife even if it is easier to forgive them as mortality tabels are pretty constant and so they may have confused these attributes and believed them to apply to the stockmarkets. whatever the underlying reason EW does not care as the charts will divulge all anyway. Here it is again.
Month: January 2009
TSE jan26
No further comments other than the e-wave may not as yet have occured , otherwise the story remains the same!      As always, cick on the chart to enlarge.
CAT again Jan 26
Sometime ago, before this website, I showed charts of John Deere and Cummings Engines using them as a proxy for heavy equipment. All showed indicated that a 5-wave bull wave of many years was coming to an end and therefore a drop of at least 61% should be expected. More recently I suggested that Cat may trade back up to about $50. We fell short of that ($47,50) and now it looks like we are going to make a new low sometime in the not too distant future. Wave 5 down seems to be starting now! (a few weeks  ago)
GE Jan23
Someone asked me why I thought GE should go down when it is quite obvious that this is a very well run company (Jack Welch and now Jeff Inmelt, 6sigma, 20% hurdle rates and, by the way, the ONLY original stock left in the DOW ). What is there not to like? Well, apart from the minor little inconvenient fact that there are a few small flies in the ointment, the beauty of EW is that it is not concerned by any of that. It simple is pattern recognition, nothing more, nothing less. So have a look at this chart.
Notice the classic correction, an a-b-c down within which the c is approximately equal to the a. At that point it gets a little silly as the stock would be worth close to zero.