$51 now looks to be a good target, this is on the Feb. future!
Month: December 2014
HON, update
April last year we showed 3 possible scenarios. We still do not know if any of them will prove to be correct but the most bullish one is winning, which has been par for the course the last few years (see previous blog). It is a bit of a stretch but it does work best. We assume there was a 10+ year triangle 4th wave and the actual “thrust” started just 3 years ago, most of which is shown in the smaller chart. We have almost done enough, slightly more than the triangles measurement but short only a few dollars towards the upper trend line of both the whole thing and the thrust. This should be a sell. It would be reasonable to assume that the entire thrust will be retraced!
IMG, IAM Gold update
We have two charts here, on the left today’s chart of IMG and on the right the chart of silver, the stuff, from October 2012, now more than two years ago. Starting with silver, at the time we assumed a double zig-zag correction was forming. Whether or not that was correct matters less than that the target of about $15 has been dead on so far even if it , arguable, took a bit longer than expected.
IMG is interesting in that it has done ALL the basic things one would expect. It is one big a-b-c correction so 1. expect it to go to the 4th wave of previous degree, 2. expect c to equal a give or take, and 3. expect the end result to be horrific. We have them all here so possible this is one precious metals stock that has completed it’s decline. There are many that are close to what we expect to be a bottom and they are simple not going to do it all at once. Others in this league are CFE.A, Central Fund, KGI , Kirkland , ABX almost and so on. If betting on a single stock is not your cup of tee, the ZJG, BMO’s Junior Goldstock Index ETF could be a good choice. It is trading at 1/5 of its peak value and may have completed the correction, if not it only needs one quick move below $5. Both the RSI and MACD seem to be smiling already.
HAL, Haliburton
These guys are in Oil Equipment and Services, and were rather involved in the Iraq situation under the charming leadership of D. Cheney who no doubt parleyed his government job into a considerable financial windfall.
The Bigchart has an exceptionally well formed B-wave which alone suggest a drop below the 2009 low of about $12. In this case the line connecting the lows may stop the decline at around $19. Since we are in a C-wave, which must subdivide into 5 separate waves down how do we get there? Using the gap-in-the-middle concept on this stock we have no problem getting to $18. Assuming that this gap occurred in the 3d of 3, where it most often does, the wave count could ultimately look as shown, this even without extensions or other things that could take the stock lower. A sell obviously.