Then – a year ago – and now charts. A year has gone by and the price is still the same at about $28 but the timing is off by a whole year. The error might be that the c part of the a-b-c B-wave traced out a time consuming wedge that has its base at $16, so that is where it should go in the first round and new lows in the second round. A sell by all means.

Russell Metals is another one of those stocks that has followed a very bearish pattern. However each time it retraces so much of the preceding drop that it is hard not to wonder if this is the correct interpretation. A few more dollars and this stock will make a new high! Un till it does remain bearish. This stock trades at a p/e of 15+. One alternative scenario would be a much larger B-wave making new highs. This is so contrary to all the evidence that it realy cannot be taken seriously at this time. After QE5 and another 10 trillion who knows.

Another B-wave?, they seem to be a dime a dozen. Perhaps the market is telling us something. Just like most everything seemed to be a buy back in the spring of ‘09 , now almost everything seems to be a sell. Russel Metals is not quite as obvious as many of the others, but it does happen to be in a category that has undoubtedly been a big beneficiary of the China story.  This B-wave is a little bit of a stretch, the megaphone in the middle is less than compelling, but it could just be a simple flat which fits almost as well. The C=A is close enough and both the RSI and MACD have been on a downward slope for almost a year. Furthermore we are pretty well at the 61.8% retracement level.