BB update

Then and now;

bb may 29 2017bb march 14 2018

We recommended buying this stock more than 2 years ago at about $9.25 on the understanding that you use a stop loss order at $7.25. It never did hit the stop-loss. We did suggest you sell at $15 if you did not like the overbought situation but we also reiterated our estimate for a target at $18. We reached that while we were asleep at the wheel but should you still own it and sell now you would make a gain of 80% over roughly 2 years.

The stock may be tracing out a “diagonal” for the C part of this A-B-C in which case it could go as high as $19. Your call!

Dow again

dow mrch 14 2018

Here is where we are today, something for everyone it would seem. If you are a bull you see a nice triangle in which the e-leg must stay above the low of the c-leg. Then you would expect a thrust up which could be good for another three or four thousand points. The only fly in this ointment is the a-leg. It is best counted as 5-waves, that is an impuls wave 1 down and definitely not as a wave a of a triangle (not possible, not allowed).

The proper count would be a 1-2, 1-2 and now we are in a wave 3 of the first major downleg. This is where things should start to accelerate.

As to the question why now, there are quite a few possibilities. We have Stormy Daniels about to talk, we have Kudlow taking the place of Cohn, we have the Russian situation heating up, we had a Democrat win in Pensylvania, we have the NRA running the country – in short reasons galore but above all we have an overvalued market by just about every measure.

The bulls may still be right but break 24,000 and there could be another 20,000 to go.

BBD.B, Bombardier update

The then, 17 April 2017, and now charts;

bbd.b april 17 2016 sbbd.b march 14 2018

It is worth reading the whole blog, particularly the longer term chart. Had you followed this advice you would have doubled your money over the past 2 years. We are not yet at the wave e level as suggested at that time, about $5, but nevertheless we would exit the trade on the next uptick given our overall negative outlook.

Dow again

dow march 13 2018

This could be the third 1-2, all of different degrees.

I checked the data with stockcharts and apparently the high point was actually at 25449, higher by six points than I have. That would add 4.5 points to today’s peak, if that is what it is, and would bring it to 25376, exactly where it went using the 75% retracement parameter for a third time!

Sorry, apparently forgot to post this!