PH , Parker Hannifin

Back in January we thought this stock was a sell at about $96/97. Here is the chart again;

PH June 2011

We were off by a dollar, perhaps two. The error is in underestimating the attraction of big round numbers like $100 , even in countries where the metric system is so culturally  foreign that many have difficulty multiplying or adding 10 and 10 without a calculator. Call it the Mount Everest effect if you wish, we climb the mountain simple because it is there.

   The point here is that again we have a very nice , almost symmetric B-wave. This one exceeds the starting point of the A wave but it is still very much within the “normal”range for these events. We are in C (the long-term trend-line more or less confirms this(see previous blog). $55 would be a first stop; a new low thereafter.