See previous blog. This one is doing as expected. The target should be around $21/$22. If you are anxious to get out , take your 10% modest profit and run
Year: 2012
WN George Weston Ltd. a.k.a Loblaws and President’s Choice
Ad nauseam? I have included the big chart just to show the range that this stock has gone through over the past 15 years. The move from $10 to $140 was , of course, absolutely normal and the way markets are supposed to work. The next $100 drop was an absolute calamity for which there was no ready explanation, despite the rather obvious fact that the rise was much steeper than the drop. Perhaps it was Wallmart’s entry into Canada.
It regains it’s composure by roughly doubling in what is a fairly clear B-wave. Then even before Europe almost blows up the stock loses 1/2 of its value in next to no time. From that point on it has been working on the longest triangle of them all. For ten months now it has higher lows and lower highs and probable has a few dollars to the upside before completing the required 5 leg sequence. Given its size, this is probable not a 4th wave triangle but a B-wave triangle. Alternatively it is a series of 1-2s masquerading as a triangle. The important thing is to know that “consolidation patterns” are continuation patterns, you keep going in the same direction.
In this case , that is down. We would sell now.
PHM, Pulte Homes update
August 30 we recommended this stock for the simple reason that it had dropped out of a triangle and should return back to that level. As the stock proceeded to drop for most of September you should have gotten it under $5. Here we are, almost back to the triangle , good for a 60% gain. It may go higher but it should drop back to $5.25 before it does that, if it does.
BID, Sotheby’s Holdings Inc.
Sotheby’s did exceptionally well since the March 2009 lows, going roughly from 5 to 55 and getting close to a double top. Not selling there is an unforgiveable error. The stock is on it’s way to about $23 as a first target. This chart is identical to the one before, so it is truly ad nauseam that your are getting the same, or at least similar picture. Here too there is possible a triangle 4th wave, it could be complete or still in need of a d and e, which would simple consume time but not change anything else. By the time you get to that $23 level, the B wave in the larger B-wave, you will have lost 1/2 of your money when measured from the top. If the stock does indeed go to the expected target, below $5, any gains will be lost.