As expected the earnings were pretty solid, good enough to provide the anticipated (see previous blog) minor 4th wave bounce. However, soon the downtrend should continue more or less as shown with an even bigger bounce as wave 2 (of 3 of C). Why? Who knows maybe a few trillion yuan and another 50 beeps off bank reserves in China, more talk about QE3 or Greeks loving austerity, in any event nothing whatsoever having to do with BNS.
Clear 5 up? Maybe. Certainly Friday’s stellar performance has “blow-off” qualities with a nice little throw-over. If so a pull back to the 4th of previous degree should be next. Looking at the big picture, it is perfectly clear that this speculative stock, quoted on a speculative exchange Has had a rather volatile pas;
It has taken 16 years to “double-top”. This could just as easily be an a-b-c counter-trend rally as the start of a new beginning. A well in Keyna looks promising, is what gave the stock its latest spurt . Given the past one might be well advised to step aside to see what these forward-looking statements really mean.
Like so many of these stocks they have not done very much lately. MMM, WMT, PFE, JNJ etc. etc. seem to be oblivious to the world around them. This one has not moved for 7 years or so. But it also has not gone beyond $75. Next big move should be towards $45.
After today’s idiotic 300 point move on the TSE, the predictions on this stock are now increasingly more plausible. Check previous blogs, but the story essentially was that it could not go lower than $22.50 and even at $25 should gain some $8. I am myself always amazed how accurate this stuff (EW) often is. I cannot afford detailed tick charts so I assume that wave a was a 5 wave move. Wave B to about $26 as predicted occurred yesterday. Wave C probable completed wave 3 of C and will have a minor pullback in the morning followed by the 5th. That should take it to the anticipated $32/33 level. $8 on $24 is roughly 30% absolute. but as they say in Holland, don’t sell the skin before you shot the beast. Anyway a sell at around $32. For the sake of a good understanding, that does not mean that the stock cannot go to $300, whatever, it is just not the thing we understand at this time.