CVS , Caremark Corp,

Hamilton

This is a large pharma retailer. Peddlers of pills, if you will. One of the last growth industries in the USA. If, by the age of 5 at the latest, you are not taking at least 5 different pills for an equal number of real or imagined ailments, you have to assume that the American Dream has passed you by. It gets worse over time. As always , the rest of the world is doing its best to catch-up. But these fellows operate locally only, so perhaps they benefit from Obama-care, perhaps not. Here are the charts;

cvs b

The immediate trajectory is not perfectly clear. We suspect that we are making a four year B-wave in the form of an A-B-C in which the b is a triangle. Both legs A and C are now about equal, we have made a new , irregular, top. The straight line through the tops runs at a little under $50, whereas the channel line is a little above that, say $52. Considering that we are already at $46 there is not much room left. Use a very tight stop or sell outright soon.

STX , Seagate

Hamilton

stx big 2012STX b 2012

Seagate makes internal and external hard drives, essential for all computers. We know absolutely nothing about these things and hope to keep it that way. Often ignorance is indeed bliss. Sell the stock anyway. This stock has displayed a real gem of a B-wave over the past 4 years or so, managed to double-top, and is already on a downward trajectory. At a minimum this stock should be trading at $10

THO, Tahoe Resources

Hamilton

THO

The top is either the first or the second top, with either a simple a-b-c wave 4 zig-zag or a more complex irregular flat. Either way the first target , as always is the base of the wedge $14, so today’s drop comes as no surprise. Most likely we had completed waves 1 and 2 just before this drop and are now in 3. Again using the gap in the middle approach suggest the stock should drop to about $6, if not further.

AEM , Agnico update

Hamilton

See our Febr. 2012 blog. We recommended this stock at $33, a little below the market at the time , for a move to $40 and , perhaps, $44. Here is today’s chart;

AEM june 2012AEM s June 2012

Notice that the chart on the left has a big gap, often indicative of a 3d wave. The more detailed chart on the right shows a clear A-B-C with a C as “diagonal” read wedge. Therefore this is a corrective, counter-trend, move, most likely a 4th wave. Here is the total picture.

AEM june 2012 b

First of all from $33 (the low was $32.50) to $40 or $44 resulted in a handsome profit of as much as 30+%. If you have not sold yet, you should. Using the highly sophisticated gap-in-the–middle approach this stock could fall to about $17.50, which, as it happens , is also where wave 5 would equal 1. We have counted wave 2 as an irregular flat to accommodate the alternation guideline, this may or may not be accurate, but it is a virtual certainty that this stock is going lower.