Month: September 2012

PFE, Pfizer update

Hamilton

Again the then, Dec. 2010, and now charts;

pfe dec 2010pfe sept 2012

There are various blogs in between advising exiting the position and, in contradiction to that, waiting for targets at $24 and $28 (all are in the archives). You are up about 40% if you held on to this stock from Dec. 10 onwards. Now that things are a little clearer we would prefer the A-B-C count as opposed to the 1-2-3-4-5 possibility. The two legs are roughly equal in size if not in an absolute sense than proportionately and both the RSI and MACD have been turning down for some time.  The same holds for BAX, Baxter.

ELD, Eldorado

Hamilton

The usual then, 6 of June 2011, and now charts;

eld b 6 june 2011eld sept 2012

Eldorado is another gold stock that we have commented on before and had completely forgotten. We singled out $10 as the ideal first target for this stock for the simple reason that it represented the base of a very clear wedge into the highs. The stock did exactly that and has been rebounding for quite a while. The nice thing is that the drop from $22 is a 5-wave sequence, clear as a bell and having an expanding wedge for wave 5. It has just retraced all of that 5th wave as is to be expected. In the mean time both the RSI and the MACD are at nose bleed levels indicating a turn soon. The stock has retraced about 50% of the fall and could do a little more (to $17 maybe??) , but once done the drop should resume with at least another 5 wave sequence. If the second leg is equal to the first it would target $5, very close to the low point of the expanding triangle wave 4 of previous degree. By the way, this is a very low cost producer!!

WPT Westport update

Hamilton

wpt sept 2012wpt s sept 2012

Looking at the big-chart it is not clear at all clear if this stock is in a new bull market from the low in 2006, or still in a correction from the 2000 highs. That is the beauty of discipline,  you don’t need to know. Just buy the stock and put in a stop at about $27. This one is so volatile that it could easily gain $10 or more on the next move, risking a dollar or two is probable worth it. The RSI is signalling a turn soon so you may want to wait another day before putting on this trade.

S, Sprint Nextel

Hamilton

s sept 2012

Sprint Nextel did precisely what we anticipated by dropping to , about, $2 twice, once in Oct. 2011 to end wave 4 and again in Jan 2012 to complete wave 5. We forgot to take note!, just too many stocks to keep an eye on. As a general rule one should always reverse positions after the completion of a 5-wave sequence. If one is only interested in playing the long side, you simple alternate between being out or being long. S looks like it is in a 4th wave on its way to double topping. Not worth playing anymore.