So far at least the TSX also has not negated the anticipated pattern. Provided e does not trade above the top of c (but it may go above the line!), things are still on track. We are now 3 trading days away from year-end, maybe that is what the market is aiming for. Time will tell.
So, so far no banana, but as we pointed out earlier, this market will do anything to push the stocks up. This time it is Japan promising more stimulus , Greece buying back debt at 31 cents on the dollar, Germany having its confidence factor that reached a 2 1/2 year low suddenly charging the other way and the fiscal cliff fatiguing everybody.
The Dow is hitting the lower line and perhaps had not yet completed the a-b-c as the c lacked the 5th wave. The Dax similarly is right up there completing its C wave. Stay tuned.
Taking a very long time but , so far at least, the outlook has not been negated. Time will tell.
They are planning to make at least 2400 of these “hybrid” fighter jets that now are budgeted to cost close to $200 mln. a piece. So far about $65 bln. has been spent on the development of this plane (2x LMT’s capitalization) and things are not going smoothly for this most costliest defense programme ever. Given this fundamental backdrop and prospects of the negative-feedback loop continuing for some time yet, it is amazing that the stock is still trading at such lofty levels.
The count is not entirely clear but plain enough to assume that the drop in 2008 was wave A, the rebound of about 62% thereafter wave B, so now we should expect wave C down to start any time now. In detail;
A nice wedge for the C part of the A-B-C rebound. The count could be wrong in so far that we may only be completing wave 3 of C rather than the whole thing. Unlikely considering the RSI and MACD. A sell or use a stop at about $86.