First the usual then ( March 2, 2012) and now charts;
The stock stopped dead in its tracks at exactly the right level two weeks later. It should drop to the lowest point of the triangle as a minimum, that is $22 or down about 30% from here. Looking at the big picture, much lower levels are possible and likely.
See also previous blog.
Two steel stocks, the oldest and newest. (Take care not to confuse X with TMX in Toronto!) Both peaked at the same time in 2008 and are now both declining. The retracements are shallow and we are getting lower highs. X seems to be well on its way down another leg whereas NUE is triangulating, a congestion pattern that is usually resolved in the same direction as it was entered, that is down
It is difficult to get a chart after a stock has died. Here is the best I could find. It is textbook EW. 5 up and 3 down only in this case that was all there was. This stock traded on the TSE, not the Venture exchange so it was “safe”, almost a blue chip. Like a good novel the stage was set in a far away country, one where head-hunters were still held in high esteem, Borneo. The characters were also interesting, an ex money-market trader with a taste for booze, not uncommon by the way, a Dutchman who never lost his head and a side-kick womanizing fellow from the Philipines. SNC Lavalin and American Barrick played minor but crucial roles. The best part, in my opinion, is this guy that is dropped out of a helicopter over the jungle without a parachute. He is found the next day! You would be lucky if you found a white 747 there within a month. We believe what we want to believe.
A report came out the other day that perhaps the number of psychopaths in the financial industry is as high as 10%, they don’t care. Earlier we saw that a majority of MBA students at Harvard thought nothing of cheating if it served their cause. The world is losing its moral compass and the temptation rises faster than the price of gold. So if you are caught in another stock scam, make sure you are at the winning end.
Bakerville is a small place in BC. Once upon a time, about 1860, it was the largest town north of San Francisco and west of Chicago. It was the focus of yet another gold rush along the Western coast. This company has a big stake a little north of this particular spot, so one can say with absolute certainty that there is gold in them mountains but, and this is the question, how much? Well to start, 10.6 mln. indicated ounces at Cow Mountain, an Alpine setting that would make Julie Andrews do one of her favourite things. Furthermore there was, according to a company statement, geological potential for , possible, 90 mln. ounces at the mountain. An absolutely huge amount. Some have expressed doubts about the methodology used and therefore the results but I am gullible to a fault and just look at the waves;
It is good to start off big as it puts things into perspective, especially if your newspaper only shows a chart the size of the little square in the bottom right-hand corner. There are a few points to wonder about. What happened during the 4 years the stock was AWOL? And then the last 6 years the stock shows no pulse at all. Needless to say, the stock was never really at 12000, that happens only due to reverse splits.A chart from the G&M reveals that there is life;
From the low of 15 cents in 2008 the stock moves up in a perfectly clear A-B-C, counter-trend, correction. Ergo the stock should trade below 15 cents someday soon. There is no plausible alternative count that I can see unless one assumes a “failure” in the latest leg down in which case we could conceivable have just started a new bull. I would tread carefully!