Hamilton's E-Wave Analysis

PH , Parker Hannifin

This company is in the business of making “motion and control” technologies. Hydraulic valves, pistons, hoses and a myriad of other things. You cannot make a John Deere or Cat. without them. I know them well from a previous life in consulting with Bank of America. They are a real American company, whatever that means. Here are the charts.

On the left you have the 30+ year chart. The trend-lines drawn are simple their to show the degree of freedom that the stock has.  It is a little like a cage that defines the normal boundaries . (by the way, the lines would be about parallel of a semi-log chart was used.). Again we have the 5-waves up, just like all the others. Also the $-range is very similar, nearly always $0/5 to $70/90 or so. Then this thing drops like a stone only to make a V-turn and rise to new highs. This is a B-wave, often caused by momentum players who have adopted it and who believe in the greater fool theory. It always ends unpleasantly , when it becomes clear that there is no greater fool anymore, you are it.

   At about $96/$97 the stock will hit the upper trend-line AND c+a within the B-wave. Time to get off this rollercoaster.