If you are still long this stock (from <$18, or so), we would recommend selling here to about $23. This could prove to be real bad advice, but for the moment we are assuming that the stock just completed some degree 4th wave.
Year: 2013
WY, Weyerhaeuser and WFT, West Fraser Timber.
Slightly more than two years ago this stock looked like it was ripe for a fall from about $24. It did, losing about 1/3 of it’s value but then restarted the trek upwards. It did not follow the script shown in green. No doubt a little well timed Fed QEeeing did the trick and pushed the stock to new, all time, highs. Even so the structure has not changed, it is still a “flat” A-B-C, 3-3-5. In fact, it is now more appropriately a flat. Next big move should be down to about $7. Perhaps the housing market is not as hot as it is made out to be, we will see. Below is WFT, it did all of the above and then some, trading at 38x p/e. Clearly this stock is is ahead of itself. See previous blogs.
HXD update
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.
SFF , Seafield update
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.