ABB, Asea Brown Boveri

These fellows are an international engineering firm, one of the few Swedish/Swiss mergers in existence. In late 2002 the company got caught in an accounting scandal which almost killed it. I personally missed buying the stock by about 10 cents from the low (near $1.10) only to watch it climb 30x. This business does not forgive perfectionism easily.

In any case the stock was a veritable phoenix rising from it’s ashes enough to , just in time, participate in the great recession. Here is the chart;


Again we have the same large b-wave counter-trend correction that is now breaking down. The symmetry is near perfect and it is hard to escape the conclusion that most of Europe is listening to the same drummer. This is a sell.