As usual the August 2013 and now chart;

This is an A-B-C correction that is a 5-3-5 zig-zag as opposed to a 3-3-5 flat. The end result is roughly the same but the interim retracement does not even get close to the top. We had no particular target other than shown by the red arrow, but we pointed out that this mutual company that started  with a good deal of success would become almost irrelevant. Right here might be low enough as the right number of waves can be counted. A buy at $4.50 with an initial target of $6.

Note; This can also be viewed as a double zig-zag. Often the individual A and C legs within each zig-zag are , more or less, vector equal. That would be the case around $4.50 as well.

The 4 cornerstones of their approach (“Style”) are, intelligence sharing, discipline, innovative thinking and people-first. In short what every Tom, Dick and Harry does today. They do, however, have two classes of shares! As of mid-year they had about $36 bln. in assets under management. They could be a good buy for one of the larger mutual fund companies or banks with a cap. of less than $400 mln. Here is the relative performance per the G&M charts.

After energy the mutual fund sector must have been one of the worst, AGF is not alone but it is the worst.

Some previous blogs were fairly accurate but we forgot to follow up. It seems like the whole investment industry has forgotten this company that was once a role model for the mutual fund industry. Somehow they managed to make themselves irrelevant much faster than their peers. If, repeat IF, our analysis today is anywhere near correct the company will soon be completely irrelevant.

In the big picture we appear to be looking at an A-B-C zig-zag correction from the highs of $40. This is a 5-3-5 structure. Anyway we are in the C part and Cs are always 5 waves. Problem is that we have not made a new low which we should. The other problem is that wave 4 of C already overlaps with wave 1 of C. This is an absolute no-no EXCEPT if we are looking at an expanding diagonal triangle. These occur only in 5th wave positions (or Cs) and are the only pattern that allows overlap, indeed it is normal to have overlap. This last leg may go all the way to the trend line but frequently does not quite get there. A $4 or $3 target would be perfectly compatible with this scenario. Note that both the RSI and MACD are not confirming the recent new highs.  A sell.