For those that scoff at EW or any other form of “pattern recognition” this is just a little jewel. An absolutely perfect parallelogram , presumable wave 4 of whatever degree. Wave 5 could be complete so be careful before you back up the truck.
Month: August 2011
PHM , Pulte Homes
Homebuilders have been doing just great the last few years. Pulte is right up there with the big boys. Just as in the case of Sino-forest, we know absolutely nothing about this company, and frankly we do not care. This is a buy, plain and simple and the reason will become evident in due time. A full circle bubble AND a nice triangle. We should go back at least to $7/8.Definitely this thing can go a lot higher but one simple should not speculate, take the low hanging fruit and let someone else worry about the rest.
By the way EK should make it to $3.50 tomorrow and if RIM gets another $ or two, sell.
EK, Eastman Kodak
Just a reminder that EK is reaching our $3.50 target. It may go (much) higher but we would leave that for the next guy.
X , TMX Toronto Stock Exchange.
The Exchange presently trades a little under $40, against a bid of $50 by Maple. Clearly expectations are not high that this will best regulatory approval. If combined with Alpha, as is the intention , the new entity would control upwards of 80% of all trading , a level that will be seen to be monopolistic and uncompetitive . The big surprise is that not everybody believes this. We have consistently advised getting out of the stock. The a-b-c pattern does not bode well for the immediate future. Looking at some of the others, the LSE the first suitor, and Deutsche Börse, itself involved with a failed bid, is not promising either.;
Whereas X trades at about 70% of it’s peak value, the LSE is at about 40% and the DB at less than 25%. In the event of a merger these fractions presumable will also merge leaving only downside for the TMX.