On July 6, 2011 we put out this picture of Electrolux in order to demonstrate the seemingly senseless ups and downs that stocks are submitted to in the markets. Here is that chart;
Despite all these moves it was still possible to put a reasonable plausible EW count on this stock. We know that nobody on this side of the pond owns the stock so we have not followed up on this prognosis. However , today it is the news again, announcing a 10% layoff of it’s workforce and generally guiding down on the “white goods”sector. Here is where we are today;
Unfortunately Bigcharts does not allow me to get the exact same chart this time, so this one will have to do. The projection was for wave 3 to take the stock from $50 to $23 or so. In reality it dropped to $28 and then rebounded to $39. Now it is reasonable to expect a triangle or flat to form to provide alternation with wave 2. Today’s news may provide the “fundamental” backdrop for this kind of action.
Whirlpool is in a similar position, having lost about 50%. But here there is an outside possibility that a simple A-B-C (in blue) was completed. We doubt it but it is possible. More likely wave 3 is still in progress.