Month: November 2012

BBD.B update

Hamilton

BBD.B nov 27 2012

Other than a lot of time passing by, there is little change in our outlook on this stock. The 4 year drop from $25 to $2.30 is 90%+% and as such sufficient to qualify as a complete correction. Time will tell if it is complete, but for the moment two scenarios present themselves and both are bullish in the short term (next few years). We either had a wave 1 of a new bull run followed by a , normal, large retracement and are now about ready to move into wave 3, or our assumption is wrong and we are looking at a corrective A-B-C rally that is still missing the C-leg. As long as you maintain a stop at around $2.75 (arbitrary choice), things should work out on the long side. The stop is recommended as these are not the only two possible scenarios, just the two most plausible ones.

VSN update

Hamilton

vsn nov 26 2012

Last year Dec.19 we commented that this stock should be sold, however with the understanding that it might still climb a dollar or two. It inly did one single dollar and promptly proceeded to lose about 30% of its value ( in wave 1 ). From there it rebounded almost 50% in wave 2 so the serious stuff should start when wave 3 of 3 goes down for real. Any moment now as minor 1 and 2 of 3 appear to be complete.

BMW update

Hamilton

BMWXetra Stock Quotebmw nov 26

Germany’s DAX index was up about 5 % and BMW went up with it. Today it peaked at Euro 66.65 which is where we anticipated it should go to retrace about 62% of the Mar-July drop earlier this year. Now there is absolutely nothing compelling about these Fibonacci ratios so it is not as if it has to stop here. It is just that if you want to make a wild guess odds are your results will be more accurate. We will see.