Month: November 2011

RY, Royal , Canada’s second largest bank, update. BNS

Hamilton

ry nov 10 2011

In the end we actually got the expected $5 rebound, but by tripping over our own feet in trying to execute on that. Anyway, this is where we are now. The stock has dropped back to about $45 and is bouncing off the upper channel line of 7 or so months. The move from the lows might include a minor failed 5th wave, leaving a clear a-b-c. Whatever the case, it is not an impulsive move. It could be just the A of a larger A-B-C that will be more complex but nevertheless still a correction ( in grey ). Alternatively a triangle wave 4 (in blue) could be in the making. This too will kill time and will limit the upside to $50 maximum. Either way you should be able to buy this stock cheaper, perhaps much cheaper.

Looking at the Bank of Nova Scotia a more complex correction seems to fit best;

BNS nov 2011

It looks like we are doing a small triangle wave b of an a-b-c wave 2 correction that could potentially take the stock to about $55. Then wave 3 down starts!

IVN, Ivanhoe, update

Hamilton

Back on Oct. 6 we commented that we were fundamentally bullish on this stock but were not sure about the count. $23 was mentioned as a “critical” level . Here is that chart;

ivn oct 6 2011

The stock has obliged so far, moving up a lot faster than expected but otherwise following the script. Here is today’s chart;

ivn nov 2011

The problem is that the move from $13 to $23 is pretty well a clean a-b-c, in other words corrective. This could still become a 5-wave move over time , but right now  it does not look as if it will. Stepping aside or using a tight stop is advisable. By the way , even if this becomes a 5-wave initial bull wave, you will probable revisit the $23 to $19 range in any case!