Month: June 2011

TIH , Toromont Industries . More B-waves

Hamilton

fts june 2011 tih june 2011

Toromont Industries Ltd. is involved in renting and selling heavy construction equipment. Like Finning they distribute a lot of Caterpillar equipment.

The B-wave here is clear as a bell as well. Again an error is always possible but that would then probable be because we are in a wedge formation that will, but has not yet, complete the entire 5-wave sequence in much the same way as wave 5 of 3 is also a wedge. Should that happen then the stock would climb only a few more dollars at the most and basically kill time. Therefore a prudent investor would sell now.

Assuming that there might be some correlation between this stock and the manufacturer of much of it’s equipment , Caterpillar might confirm this outlook. Here is the latest Cat. chart, what bear market?? one might wonder;

cat june 2011

FTS, Fortis Inc. Another B-wave?? Forgot to put this in!

Hamilton

fts june 2011 l fts june 2011 2l

Fortis is a Canadian utility, the largest if I am not mistaken. Most of their businesses, with a few exceptions, are regulated and consequently this one should, more or less, trade like a bond in the same way most utilities do. The stock is telling us that interest rates are at a low or very close to one.

From an E-wave point of view this is an immediate sell. In both the short and long term charts the B-wave stands out as clear as a bell. Of course it is possible that the count is wrong and that we are in the process of forming a  5th wave for the entire sequence, but even then the stock would only add a dollar or two after months of agony creeping up. This is a very low probability event and ergo we would sell now.

Remember that you can click on the charts to enlarge them and move them around.

OTC , Open Text

Hamilton

otc june 2011

Last year, around this time, the stock “triple-topped”, if there is such a thing after thrusting out of a fairly clear triangle. To sell at around $52 made a lot of sense. The stock did drop by about 30% right away. But it regained its momentum  and even exceeded the channel that has confined it for the past 5 years.  Common sense tells us that,  if it wasn’t a sell then , it sure is one now!

TRE (see last years blog)

Hamilton

TRE june 2011

In May of last year we thought this one was ripe for a turn. QE2 was still to come and sort of “postponed” the event. It even managed to double top at $26 (only $4 above our sell). Now it is going south with a vengeance. A bounce should be forthcoming soon but ultimately the previous analysis still holds. A hedge fund by the name of Muddy Waters did just that by claiming the company is a fraud and should sink to a single dollar.