Hamilton's E-Wave Analysis

MMM, Minnesota Manufacturing and Mining

MMM is one of the last “blue chips”. It is best known for its post-it notes, has a dividend yield of 1.7% and a P/E around 17. Solid and boring, here is the chart:

There is a lot of scribbling in this chart and also a lot of ambiguity. For instance it is not clear which top is THE top. What is clear is that both tops are tops, both have wedges driving the stock into the peaks and in both cases these wedges have been, or will be, retraced entirely so look forward to at least a drop to about $72 (about 25%from the top).

What we have here is a good example of double-topping and the Mount Everest effect of a stock trying to reach $100. Once that is reached usually a good drop follows. It matters little (for the moment) which top is the real one. In either case a drop back to the 4th wave of previous degree should be anticipated (at $40 or so). Lets see what happens.