Month: October 2012

HPQ

Hamilton

The nice thing about getting stopped out is that you can do the same foolish thing again without loosing too much;

HPQ Oct 2012

Between here and $11 this stock is a buy, if only for a nice dead cat bounce of 50+%. The 4th wave of previous degree is presumable at the $11 level, the stock is already trading with a $14 handle so there is about $4 room left to manoeuvre. At a glance you will notice that waves 5 and 1 of C are about the same size, a common feature. The 5th wave itself seems to be subdivided in 5 waves and therefore may be complete. In all events use a stop loss a few dollars below the buy level but not below $11.

Sony  (SNE)at about the same level may be a better bet. It is down a lot more if that is  criterion.

CCO, Cameco update

Hamilton

cco jul 2012 scco oct 15 2012

Then (June) and now charts of Cameco. Still looking for $30 or so sometime in the future. We are probable in an a-b-c correction, that is in the worst case, that has a very long and tedious a-b-c as a b, There is a distinct triangle in the b!. We are close to the old lows of $17.25 so if you were to buy this at say $18 with a stop at $17 you would risk a single dollar against a potential gain of $12 or so. That is a very respectable risk/reward ratio. Chose your own tolerances and methods but which ever way you slice it , this looks like a buy to us.

Do use a stop as lower levels are still possible, see longer term charts in previous blogs.

HFD, Horizons leveraged bear capped financial etf.

Hamilton

hfd b 2012hfd s 2012

No point in counting any of this. Suffice it to say that we now have some sort of triple bottom around $6.50. Coming from $55+ this is clearly something you would not have wanted to own from the March 2009 lows. Today is a different matter, it may save your bacon.

AEO, American Eagle Outfitters

Hamilton

aeo oct 2012

American Eagle Outfitters is an apparel retailer, trading at a p/e of 23 and yielding about 2%. The people at the G&M see a W-formation and conclude that the stock should go higher, at least if it doesn’t go lower. We think this is a sell, now. The stock drops from $35 to $6 with the rest of the financial universe, then regains it’s footing and retraces a perfect 61% of that in the next 4 years. It does it in an uncannily symmetrically proportioned a-b-c in which even the b breaks down again in a perfect a-b-c. By all accounts this should be it and wave C down just started.