Visa is not carrying the credit risk for the accounts, all it does is administer the transactions. I do not like the stock despite that, simple because I think it is in the latter stages of a “wedge†which has almost retraced 62% of the last down-leg from about $77. It is too late to go long and perhaps too early to short, but that opportunity is just around the corner.
Above is FNX as of Jan 2/6, one of the first stocks I put on this website. Today it looks like this;
The close today is about $5.38 and the high was about $6.40, either way more than the 30% scoring hurdle. I would exit the position as it could have completed a simple a-b-c, which does not necessarily mean that it goes to new lows but could mean that it pulls back half-way.
Here is an update on Ford. This is a schematic picture how Ford may move up over the next few months. Obviously I have no illusions that it will follow the script precisely, nevertheless if the underlying proposition is ,more or less, correct this what one might expect. RSI and MACD are already high but may stay after a pause. The gap is often in the middle which points towards the $9.75 POTENTIAL target. Presently there are 7 discernable waves within wave 3, this cannot be the end of the move. Every bull wave must have 5 + (a multiple of 4) so the next stopping point should call for at least 2 more legs before 3 is done and then there still is 4 and 5 to go. Of course we have already done a 30% gain (just for the record). Below is the “big†picture.
Nobody seems to know where gold and/or gold stocks are going. Personally I think somewhere in the neighborhood of $650 for the stuff would be a potential low, despite an environment that would have suggested gold at at least $2000 to $3000 already. Who knows but what we do know is that buying Kinross is eminently foolish by any rational standard. The reason is very simple, if gold stocks are going to go up why buy an inferior product, go for the warrants, they expire in 2013 beyond anybodies timeframe for this slump and have a strike price around $11 or so , if my memory serves me well. Here is the story (works for Yamaha YRI as well).
Notice that Kinross, the stock double tops at about $24, after hitting a low of $10. The warrants go from $5 to $1 and do not manage a double top (time decay, comparable to tooth decay except that you do not give your money to the dentist, you just lose it). Both the stock and the warrants appear (for the moment) to have completed a-b-c corrections (which does not jive with $650 gold!), so suppose they are now a buy. You would buy the warrant no questions asked. This is like a long option, a leap as we used to call them, well in the money and, provided you like gold NOW or in the near future, a much better buy than the stock. Of course if you do not like gold, you shouldn’t buy either one.
I cannot find the correct strike price on this system, also this is the b warrant, there is also a c so take care should you buy this.