Hamilton's E-Wave Analysis

CDE, Coeur d’Alene Mines

cde sept 2012

Coeur d’Alene is an interesting high Beta precious metal (silver) stock. Had you bought this as a hedge against the financial market falling apart you would not be a happy camper given that you are left with about 1/3 of your money. As far as the future is concerned this stock might give a hint as to what is in store. From the big chart it is clear that this stock has made three A-B-Cs in succession leaving us guessing what the next move might be. The shorter term chart shows the last A-B-C in more detail. Superficially it looks like an A, triangle B and then a C equal in size to the A. There is a problem with the triangle, the e leg goes too high but lets ignore that. Looking at the RSI (Relative Strength Index) the stock is more overbought than any time in the past 3 years. It is doubtful that the stock will trade above , say , $31 where it is already up by about 100% from a month and a half ago.

A similar message can be drawn from the platinum ETF PPLT;

It is by no means clear that this one should go up much further, in fact it looks like it is about to reverse. The light is still amber in our opinion.