CL update and IBM

cl july 2011

Colgate, as discussed before looks like it is topping in a 5th wave wedge. This it has in common with IBM;

IBM jul 2011 a 

Whereas CL has a contracting diagonal (wedge) has an expanding one. IBM when we still knew what business it was in, experienced a 25 year period during which the stock traded down. That 25 year pattern could possible be a “megaphone” which would , by necessity make it a wave 4. Even then the stock is topping;

IBM july 2011 log

Typically the stock does not trade much above the upper boundary of the “megaphone”, which is about where the stock is now. A sell however you slice it.