This is still our prognosis for oil. The bigger the number, the higher the degree. In the end wave C should bottom at a level below the $31 level of 2010, most likely near $10 the level it reached in the second half of the nineties. By one count that was a wave 4!
Citygroup and Goldman both are “predicting” oil to drop to around $20. The problem is that they are not predicting but are instead manipulating. If enough players pay attention it will no doubt come to pass.
Two or so weeks ago 465 looked like a reasonable target. We have gone a little more sideways while the World decided that Putin really is a nice guy and that the Greeks are trustworthy and will surely repay every cent they owe. Now the target looks more like 475, give or take. On a normal chart we are there! Objects are closer than you think.
Using a normal, non semi-log chart as from Yahoo, we may actually be at the target after all, but it is no longer the messy expanding diagonal and instead has become perfectly confined in a channel.
There are, reportedly, companies (as in banks) that are considered too big too fail. In Canada there is also a company too “je ne sais quoi” to fail. It is, par excellence, Bombardier. First of all it is a Quebec based, culturally French company with very few peers in its field, trains and planes. If Ottawa drops support for Bombardier it would invite succession of the belle province from the rest of Canada which would be an economic disaster, or at least that seems to be the thinking.
Secondly we used to be big, or at least on the cutting edge of technology, with our very own Arrow. That project was abandoned in a disgraceful manner under pressure of the Americans. No politician would ever want to relive that event. Psychologically it is comparable to killing your only child. It just is not going to happen.
Ergo at $2.50 from oblivion this stock has to be a buy. As it happens that is also where the 25+-year trend line runs! RSI and MACD are also signalling a turn. From an EW perspective we are not too sure but it could be a series of 1-2’s.
We are not sure if there is indeed a triangle in the middle, the entire thing counts just as well as an a-b-c X a-b-c or double zig-zag. In any event a drop from $320 to $11 have all the attributes of a serious correction so there is no compelling reason to expect any further drop. So both the structure and the magnitude support the notion that we are in a new bull market. Wave 1 went from the low of $11 to almost $75 and then drops to $39 in wave 2 (62%!). We are now in wave 3 which could go to $175 or so.
AAPL just bought $850mln. equipment from this company in order to create one of the largest solar installations in California. This should power all of AAPL’s needs for the next X years. It is on grid so the local utility is part of the equation.