BAD, Badger Daylighting

BAD Badger day 5 mar 2021BAD 2

As we pointed out before, this stock sucks, literally. Their equipment that you see more frequently nowadays consists of a very big vacuum cleaner on a truck frame. In a sense it is the modern version of the JVB backhoe. If you are in the country you do not need this modern equipment as the JVB would do just fine. However in the more civilized of a city the vacuum system has a lot of advantages for the very simple reason that you are not as prone to cut through a gas line, electric cables or whatever. Essentially you liquify the soil and suck it up.

For almost 50 years now this stock has displayed  very strong adherence to Elliott Wave tenets and principals making it easier to predict what should happen next.  We have a very clear triangle, always a 4th wave in uptrend, from 2014 to 2019 shown in green. This “anchors” the entire 3d wave from 2003 to 2019. The thrust from the triangle is equal to the mouth of the triangle, give or take. From 2019 to 2020 the stock drops very close to the “lowest point in the triangle” and as you can see in a glance it drops 6 blocks out of 10 which is somewhere in the order of 61.8%. By the way this drop is clearly a zig-zag which is an a-b-c in which the c is often equal to the a (they are both 6 blocks see chart on the right).

In April of 2020 it hit the low of $19.5 That would have been a clear buy if you had been looking at this stock! Obviously I was not. That low was the bottom of a 4th wave which, if correct, implies that there should still be another 5th wave up to a new high (or close to that in case of a “failure”) sometime in the (near) future. It should develop as impuls wave which normally would subdivide in 5 separate waves, however, as this is a 5th wave it could become a diagonal triangle which looks like a wedge or cone and may have subdivisions of 3 waves. So far that does not look to be the case. In any event we would look for 5 waves up and again there seems to be a small triangle which could be a wave 4 of the entire 5th wave or just of the 3d wave of the 5th wave, the degree is important. As far as I can tell wave 1 is about 5 blocks and wave 3 7 blocks. Wave 5 of the 5th cannot be the longest so it must be shorter than 7 blocks. Often it is equal to wave 1 which would imply 5 blocks. That would put the stock at about $50 but all it needs to do is exceed $47.50 to register a new high and that does not include the possibility of a failure. From that point it should drop about $30. Enjoy.

Is there alternative count. Yes. It is possible though unlikely to count the entire three moves from 2014 to 2020, down up and then down, as one single 4th wave correction. This would imply that we are presently in the process of completing wave 5 of 4 and not of 5. That still does not change the immediate prognosis by much.