Early April we commented that this stock probable would not trade beyond $45-$47 and that a tight stop should be used. Well it hasn’t and now that the parent is reducing its interest from 100 to 51% we would sell if not already done.
Spain , as so many other countries, became a full Euro area member state in 1999. Any benefits that the country’s stock index may have enjoyed as a result have now been taken back, and it does not look like we are quite at the bottom. Here are the past and present charts;
The index is now at about 6400. Wave 4 of previous degree is at about 5250, a level also suggested by the triangle (if there is indeed one) measurement. For the bulls there is the 62% retracement level which obviously comes in at just under 6000. For the bears equality between waves C and A occurs at about 4000 if it were to happen now. Take your pick, but for the moment there is a little (or perhaps a lot) of downside left.
This was a screaming buy back in the mid nineties when it briefly traded below $9. At $2/$3 I assume it made a low and is now in a new bull market. Wave 2 should take the stock to about $6/$3 so there is little reason to get overly excited yet. If this was not wave 2, but just another a-b-c rebound, as we have assumed in previous comments, new lows are still possible. Nevertheless worth keeping an eye on.
Our previous comments were somewhat confusing. This is the count we will go for for the moment. The first real resistance is at $4. How fast it will get there is anyone’s guess but it will be fast judging by previous moves. Drillers are, in a sense, a derivative of the oil producers. When they make money they hire the drillers, when they don’t make money they do not even know their name, the swings can be huge.
This was , of course, the darling stock of the “woman’s own” investment club from 2005 to 2007. They are self educated and understand all the secrets of investing, all this while multitasking. Boatloads of money were made and equal amounts will be given back, unfortunately not always by the same people! This company owes its name to the oldest of the oldest of Canadian companies, where the ladies used to get their fur coats. This mining operation is going down hill fast. Wave 4 is at $2. They also sponsor CUA, CuOro on the venture exchange. Perhaps time to sell or dream on.
See previous blogs! In the most bearish scenario this ETF should get to $14+. We will comment at some other time regarding the long term potential, for the moment it may just be a nice profit in a very short time, why not take it’??
See our previous blog. We have a $12 target on this stock. The size of the triangle suggest that that is too far, but we could get an extended 5th wave which is normal for commodities including coal. Anyway we are already at about $25 which constitutes a loss of 2/3 and we are closing in on the $18 low in 2009.
BHP is following our script nicely, having dropped another $20 or so since our last blog when it was still around $80. It has announced major cutbacks on its capital outlays which were expected to be about $80 bln. for the next 5 years. To assuage any concerns investors might have it reassured the world that it still loves coal and copper, presumable just a little less. In any event this stock should fall to about $55, perhaps a lot further.
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