Month: May 2011

HXD. Horizons BetaPro TSX 2x bear.

Hamilton

HXD may 21 2011

This is our favorite instrument. $8 was always an interesting  point as that is where the inverse HXU traded at the lows in March of 2009, see below;

hxu may 21 2011

A difference of only $0.08, and it has now held for the better part of two  months. And the HXU did a fairly straightforward A-B-C, which, by definition , is a corrective move. I think the time has come (or passed already) to buy the HXD. even at today’s price of about $8.65 or so. The Fed etc.etc. can not continue this shell game. The simple reality is that the world has mis-allocated roughly 3 trillion dollars or more, perhaps a lot more. By kicking the can down the road time is won but the question remains – as always – who is going to pay, bondholders, equity holders or taxpayers. Inevitable there will be a very serious headwind when we find out.

S , Sprint Nextel update

Hamilton

s may 21 2011

In January we recommended buying this stock as the e-wave of the triangle was still unfolding. It made a low of $4.12 but lets assume it was purchased at $4.25 so at today’s $5.50 you are up about 30%. The stock should go higher, in fact this is more or less the time when something should happen to accelerate the advance. No idea what that may be, take-over talk, anti-trust rumblings around that other take-over, CRTC meddling or perhaps they will find a way to burn water. Whatever it is it should happen soon. Ratchet your stop-loss up and wait for a sell at about $8.

CL , Colgate another update

Hamilton

cl may 20 2011

Anther possible way of looking at Colgate Palmolive is to assume that the stock has been tracing out a year long , perhaps even longer, triangle. I prefer the other count but it is interesting that the target for both counts is roughly the same. Time wise this interpretation would suggest completion  around mid July but with a high degree of variability.

For completeness the other (two ) counts are repeated below.

cl may 20 2011 2

CCO update.

Hamilton

cco may 20 2011

Cameco would ideally have another small leg down but the possibility definitely exists that the drop is done. A very shallow diagonal may have formed and the triangle shown earlier may not exist. Unfortunately I cannot get the necessary detail on these charts.

cco may 21 2011

My guess would be that we are already on the way up if we break $27.25 in which case the big fat line referred to earlier turned the tide.