Talisman did actually go up but not quite as expected. Things are unclear now so we are reverting back to the big picture (see previous blogs). The light is amber.
DOW, DAX, SPX, NYA , STOX600, TSX, DJT
The DOW has clearly exceeded its May 2 high of 12876 by about 50+ points. This would normally negate the count, that is the one where this was wave 1 down followed by an a-b-c correction/rebound. I simple do not know what to do with this! The structure is just fine, only it should not have gone this high. EW is supposed to work when markets work, that is when there are a multitude of participants who freely make up their minds to buy or sell. Perhaps this precondition is no longer met now that CB’s have thrown in 15 trillion into the punch-bowl (1/3 of the value of world equities!), never mind all the other “stimulating” factors. I just do not understand but at the same time will not get religious or dogmatic about it. Other than the Nasdaq, which is in a completely different phase, just about every other major index has NOT negated this count, so for the time being we will stick with it. Below are some examples;
You can click on them to enlarge. Un till such time that a few more of these “negate” the count I will take the catholic approach and simple nullify this one single incident.
SXC Health Solutions Corp.
A great stock, but what goes up , must come down. With a p/e at 44 that would not be all that surprising.
RUS, Russel Metals
Russell Metals is another one of those stocks that has followed a very bearish pattern. However each time it retraces so much of the preceding drop that it is hard not to wonder if this is the correct interpretation. A few more dollars and this stock will make a new high! Un till it does remain bearish. This stock trades at a p/e of 15+. One alternative scenario would be a much larger B-wave making new highs. This is so contrary to all the evidence that it realy cannot be taken seriously at this time. After QE5 and another 10 trillion who knows.