Month: June 2011

YLO, Yellow Pages

Hamilton

ylo june 2011

Less than two weeks ago we warned that this stock was in danger of falling off a cliff. The idea that provided the yield is so high that it will offset any capital losses stopped clearly stopped working. Here is today’s chart;

YLO june 28 2011

The decline accelerated. The stock was at $16back in 2006. This is supposedly Canada’s largest internet stock.It seems that the reality is becoming more obvious, nobody is letting “their fingers do the walking” if they can have Google do it for them.

Count wise it is well possible that the low today around $2 will be it for a little while ,so it may not be a good move to through the baby out with the bath water now.  A stop at the cliff line, or slightly below would have done wonders. They do not cost anything!

ERIC, Ericsson Telephone Comp.

Hamilton

ERIC June 2011

This stock was recommended in Jan 2009 when it was trading at around $7. I had not looked at it since. Today it looks very much like a sell. This chart has the usual characteristics of an A-B-C where the B is a triangle. It is not exactly clear how long it actually is, but there definitely is one. Also the top occurs above the apex and the vertical distance travelled is equal. The time intervals are a bit sloppy but with a little imagination one can see 3 clear periods of about equal time. This one should drop to below $10 at the very least.

USO, United States Oil Fund LP, more on oil.

Hamilton

USO

This American oil fund ( a limited partnership to be more precise), has tracked oil quite nicely as well. The wedge is quite clear here as well even though the count is anything but convincing.  Furthermore the triangle wave B, in the A-B-C correction may not be a triangle at all. Glossing over those niceties the overall take from this chart is that oil could drop further to where this fund will trade at around $32, by that time the loss will also be just shy of 30%.