WFT, West Fraser Timber update

The usual then, a year ago Feb. 3, 2015, and now charts;

wft feb 3 2015wft feb 20 2016

We were expecting at least a $30 drop, roughly from $75 to $45, the 4th wave of previous degree. We are at about $40 now and this is a good point to step aside. We expect a normal a-b-c correction and  so far we have only completed the a leg. The b should start right here at about $39 and could retrace 40% or more of the drop, so it could easily go to about $54. Then the c leg should start with a target of $30 or lower.

For the record, we have not always been correct on this stock, but we remind the reader that they should not let losses run. If you cut your losses at 10% say, you can be wrong 4.5 to account for this 45% gain. If you do better than 4.5X wrong against 1X right you still win! This is all the more so if we are talking about opportunities missed as opposed to actual losses.