First suggested on April 1 when it was at about $10.80 looking for a target of give or take $19. We are not there yet and would reduce the target to the level of the trend line, or about 15/15.50 simple because it may take too long and , furthermore we have achieved our proverbial 30%, which is at $14. It may go to the ultimate B-wave level of $19 but the market is a little too tricky to stick around with this kind of stock.

Here are the charts on Reitmans –

and shorter term.

The interesting thing about this stock is that there is absolutely nothing random about it’s walk Like Ivanhoe and very many others this is an a-b-c corrective move that is probable complete, notice that , though not precise, the two legs are equal in both magnitude and time. in other words vector equal. This is a very common occurrence which alone belies the random walk concept. In reality markets just love symmetry to the point that looking for it can give you an edge when investing.

As far as the future of RET.A is concerned, I have no idea what the proper count would be, that is I do not know if this is wave 4, or wave 2 of a higher degree but in both cases I think the path of least resistance is up, a break of $12 would be decidedly bullish for a target (at first) of $19. A drop below $7 would be reason for concern.

Lets hope the old wives tale that you buy at a yield >6% and a P/E< 6 still holds.