S , Sherritt

S july 2011 l S jul 2011 s

Sherritt has worked out well a few times.(see also Feb. 23 blog) There is a distinct possibility that the stock is tracing out a “megaphone” (an expanding horizontal triangle). There are a few question-marks attached to this count but from a risk/reward perspective it is a rather compelling possibility worth pursuing . First, the stock yields about 2.5% and trades at a P/E of about 8. It has mining operations in Cuba which from an American perspective makes you persona non grata as you are trading with the enemy, but Cuba may soon have a management change and all of this will be forgotten. Secondly these megaphones can only occur in waves 4 or B. In both cases the next big move is up and up fast, most often close to where the upper trend-line runs ($11) The game here is to buy as close to $5.60 as possible (bottom trend-line and about 62% retracement). In the worst case the stock could continue to drop but then it would probable not go further than $4.5 (previous 4th wave) after which it would return to $7 anyway.

I have tried to contact some of you by e-mail. Your mail box is full!

S , Sprint Nextel update

s may 21 2011

In January we recommended buying this stock as the e-wave of the triangle was still unfolding. It made a low of $4.12 but lets assume it was purchased at $4.25 so at today’s $5.50 you are up about 30%. The stock should go higher, in fact this is more or less the time when something should happen to accelerate the advance. No idea what that may be, take-over talk, anti-trust rumblings around that other take-over, CRTC meddling or perhaps they will find a way to burn water. Whatever it is it should happen soon. Ratchet your stop-loss up and wait for a sell at about $8.

S Sprint Nextel, precise update.

S mar 18 2011

So far, so good. Applying the following rules/guidelines:

1. The “thrust” more or less equal to the “mouth”.

2. Waves C and A are often equal either absolutely or as vectors.

3. The top often occurs perpendicularly above the “apex”.

4. C must be a five wave move (all C waves are!), see red.

……. we get a precise target of about $8 in about 4 to 5 months. Time will tell!

 

By the way, these triangles are very reliable patterns. The G-whatever intervention against the Japanese Yen came at the exact time that it should have, see a few entries ago.