IBB is doing as expected. $245-$250 is the ideal range. Watch the RSI for lack of anything better. Do exit long positions once we get there sometime in the next few days.
Month: May 2014
SNC Lavalin Group revisited
The big picture, the one on the left, allows for at least two different interpretations depending where you put the top. Also , if you are in the DOW 40000 camp, it is not that difficult to “see” a triangle forming that requires just a little e down before we get the thrust up to $85 or higher. We are NOT in that camp, partly because the short –term chart, the one on the right is decidedly unequivocally bearish. It is a near perfect a-b-c counter-trend rebound that is done. A break of $48 should confirm this but we would not wait for that. A sell now.
ABT, Absolute Software Corp.
Not to be confused with Abbott Laboratories that uses the same ticker in NY! This stock simple does not look very bullish to us. Best guess here is that it has done, or is doing, an a-b-c X a-b-c. It has a nice yield but is trading at a p/e of 77X, a bit rich even for a software company if that is indeed the business they are in.
CEF.A Center Fund of Canada update
Then – August 2011 – and now charts;
Almost three years ago the implied prediction contained in the EW count was that this fund should fall to about $10. This is the level of a 4th wave of previous degree and also the approximate level where the fund would retrace about 62% of the entire run up from the lows of 2001 to the highs of 2014. So far we have not done that yet so the possibility still is very real that we will. The retracement from the high of $26 should unfold as an A-B-C. What we do not know is how complex a shape it might take. A rough guess would suggest that the time down should be about 1/3 to 1/2 of the time spent going up. So somewhere between 3 to 5 years. The A-B-C shown in the chart fits the best. If correct we are presently in wave 4 of C.
This outlook does not contradict what one might conclude from ABX or Goldcorp. In fact a small e up now to complete the triangle would fit quite nicely with ABX which is now down by at least $5 since we suggested it was a sell.