TSX update (and HXD)

TSX nov 15 2014

The TSX is relatively simple in its structure. The high was in early September and the initial drop was a clear 5-wave move. 5-wave moves never stand alone, there is either something in front of it (not in this case) or it will be followed by another 5-wave move in the same direction. Retracement of initial waves are usually quite large, almost equal to the initial move, so this may have a way to go yet. Even so retracements often stop near the 62% level, or near the 4th wave of 3 of the initial move, in this case just under the 15000 level. We are close, time will tell.

hxd nov 15 2014

Our favourite HXD is, of course, doing the mirror opposite with leverage. The c of the a-b-c down appears to be forming a wedge. If correct it only needs one more little push down to complete. An excellent buy at these levels or slightly below.