We were premature in thinking that the HXD was on its way up. It took roughly two more years but here we are again at a very distinct point, the end of a diagonal wedge. If correct a move up should start any moment and be rather dramatic. Keep in mind that this was once at $41. A buy.
If you followed our advice and bought this stock at either 5 or 4 cents we recommend selling same at 10 and 8 cents respectively for a clean double. All options have been re-priced to 10 cents, a standard procedure when things do not work out the first time, but obviously at the expense of normal shareholders who do not have an opportunity to rewrite history. Also there are an additional 250,000 options given to the geologist. Not surprisingly a new find was announced today just a few hundred meters from the main body. As mentioned before, there is a boatload of options waiting to be cashed in once 10 cents is reached. Take the double and move on.
The XLF suggests that the outlook for JPM and WFC (and other financials) may, in fact, be correct. We are approaching the 50% retracement level and the structure to date is decidedly corrective
Then and now charts, then being 11th March, 2012, more than a year ago. We thought $40 would be good enough, of course it has gone well beyond that by about $ 10. But absolutely nothing has changed in the wave count and with it the expectation that the stock will soon decline, perhaps when it hits the lower trend line. This one, like JPM, is one of the few big banks that is actually trading at new highs. Why is not entirely clear.
Here is a more comparable chart;
