Manulife has been an excellent barometer for the Canadian market. It is now about a single dollar away from an earlier low as well as the lows during the depths of the Great Recession. The lows back in 2000 were about $8. The stock can trade between $10 and $8 if there is a throw-over as it completes what might be a “diagonal”. Something will have to happen otherwise this stock is in very big trouble!
Westport did shoot up but did not quite make it to the $32 target (even if it did gain $8 off the lows). The question now is was this it or only 1/2 of the bounce. The drop back to $26 is as expected but from here on there is still a reasonable possibility that we have only done 1/2 of the bounce. The C part could start any moment and then would bring the stock right into the expected range.
As expected the earnings were pretty solid, good enough to provide the anticipated (see previous blog) minor 4th wave bounce. However, soon the downtrend should continue more or less as shown with an even bigger bounce as wave 2 (of 3 of C). Why? Who knows maybe a few trillion yuan and another 50 beeps off bank reserves in China, more talk about QE3 or Greeks loving austerity, in any event nothing whatsoever having to do with BNS.
Clear 5 up? Maybe. Certainly Friday’s stellar performance has “blow-off” qualities with a nice little throw-over. If so a pull back to the 4th of previous degree should be next. Looking at the big picture, it is perfectly clear that this speculative stock, quoted on a speculative exchange Has had a rather volatile pas;
It has taken 16 years to “double-top”. This could just as easily be an a-b-c counter-trend rally as the start of a new beginning. A well in Keyna looks promising, is what gave the stock its latest spurt . Given the past one might be well advised to step aside to see what these forward-looking statements really mean.