The drop was not as violent as anticipated, but still about 20%. The retracement, back almost to $30 is huge but we have probable entered the 3d wave down so things should pick up (down).
CVS, Caremark Corp update
Our guess was for a little under $50. Perhaps it will try it one more time but this stock is a better short with about $25 to the downside for starters.
EMA, another utility update.
Then (Aug 8, 2011) and now.
So the 5th wave did show up to complete this move up, give or take a dollar. Now it is a sell.
CAE update
CAE has not done much since our last blog, but it also has done nothing to negate any possibilities at that time. The bull triangle (in green) would still require a further drop to about $8, (max $6) but, of course , it does not necessarily have to go all the way to the trend line. The bear (in black) would need an e to a max of about $13 (it can go beyond the line). Combining these two possibilities would suggest a buy at $8 followed by a sell at $11 (30+%). If a thrust does occur it would be in the order of $14 to $12 so there will be a number of different ways to play this.