HON, Honeywell Intern. update

hon oct 27 2012Hon oct 27 2012 s

Twice we recommended selling this stock. The first time it worked out quite nicely but not so the second time (see previous blogs). Where did we go wrong? The first time around we assumed that the A-B-C rebound was complete in 2011, not unreasonable since it sort of double topped there in any event. It did drop about $20 or some 30% but then came right back up. With the benefit of hindsight we now assume that the C part of the rebound was not yet complete and now has taken the form of a diagonal (wedge) just as in  the DOW , S&P and even the Nasdaq). If correct we had a small throw-over in the 5th wave of this structure and it should now be complete. A sell for sure.