Month: May 2010

SC Shoppers Drug Market

Hamilton

SC may 2010 sc may 2010 2

Shoppers recently dropped quite dramatically as a result of the Government of the day outlawing a rather elaborate system of kick-backs from the generic drug manufacturers on the grounds that this would ultimately save money for the health care system as a whole. Not exactly sure how it all fits together but you can bet your last dollar that some compromise will soon be found. There is even a competitor (Alimentation Couche Tard) announcing that they are going to open more pharmacies. Anyway this looks overdone and the EW count would suggest that a reasonable upside is there. Different counts can be attached to the charts but all suggest that $44 is likely after the lower gap is filled and in the end $50 (the top of the triangle range or wave b) is a possibility.

F , Ford update

Hamilton

f may 14 2010

Last time we suggested that Ford had done as much as one could reasonable expect, which simple means that you go either neutral or short. We were a little early as the stock managed to make a marginally, very marginally in fact, higher high a month and a half later. Adjusting the count accordingly we put the TOP at the latest high. From there we have either completed a wave one down followed by a wave 2 correction of about 60%. Alternatively wave one is not even complete (there is no overlap so that possibility remains open ) and we are now in an incomplete wave 5 of 1. Either way the stock should trade down to the $7 level or so.

BCE , RCI/B , T The Canadian Communicators

Hamilton

BCE May 14 2010 t 2010

rci.b 2010 

Telus was our favorite , and BCE our least liked stock. All three are in a business where the commodity of a phone call has dropped in price to near zero. Sofar by nickel and diming they have maintained a reasonable level of performance but that may start to change little by little as people realize that many of the services are available at a fraction of what these companies charge. From a chart point of view , all three are near reasonable retracement levels and should probable be sold. As always , clickon the chart to enlarge.

HXD

Hamilton

hxd may 9 2010 2 HXD may 9 2010

Not much downside and a lot of upside. This one is not likely to drop much lower but could easily get back to the old highs of $41 or beyond. Notice in the detail chart that the pull-back due to the Euro $1bln package was a very clear correction, either wave 4 of an incomplete 5 up or wave 2 of a completed impulse wave. Similar attractive bear instruments exist under HSD and SDS just to mention one or two.