JNJ, Johnson & Johnson

jnj jul 2012

About 3 years ago when the stock hit $65/66 we suspected that this was a sell. Today after a peak of $69.70 it is trading at about $69. That is a gain of about a single dollar a year, for 3 years and that is only if you look at the extremes as on average the stock traded at around $62 over that time. In earlier blogs we have singled this stock out for its absolute text book , classic, EW pattern. Just to be superfluous here it is again, straight out of the book;


Actually we would go a little further, the textbook sample does not show alternation within the 5th wave wedge, whereas the real sample has a real clear triangle for a 4th wave and a zig-zag for wave 2. The nice thing about the wedge is that it has to be a 5th wave and ergo the top has to be the 2008 top at about $72. From there you basically have to go down to the 4th wave of previous degree and do so in an a-b-c pattern. We have done neither, but we will. This stock has now peaked above $65 and below $70 a total of 15 times. It is about time for something big to happen and it is not going to be up.