By the same token, the Royal hit a low of $43.30 Friday morning. That could have completed the first 5 wave sequence. If not it might get just under $42 where it should also be a buy for a trade.
SLF and MFC
One I think might be a buy, whereas the other is a model case of not how to do it. The difference is perhaps not all that apparent, but Manu has been going south for much longer than SunLife. More importantly the exposure by Manu to the equity markets is, I believe, much larger, but I do not have specific info to this effect. From a pure EW point of view Sun appears to have completed a clean 5 wave sequence down. Manu on the other hand needs to go down a bit further which could potentially create a new low below that of 2009 at around $8.50 or so. Keep in mind that the Sun buy is only for a trade of about $6 and not a hold under any circumstances.
BNS, Bank of Nova Scotia.
The question is, where are the Canadian banks going. The answer is down.
BNS has a very interesting chart and the bank has held up quite well, perhaps because of it’s more international (South America and Caribbean) exposure and better growth prospects. But it should in any case fall to the B-wave level which is at $42.5. In short it is reasonable to expect a 5th wave now. Over the past 4 months the stock has moved no less than 8 times between , roughly, $49 and $53.50 and this is the 5th time it has dropped back to the $49 level. All of this is characteristic for a triangle, either the whole structure or just the tail part as in 4-5-triangle. I prefer the latter but it does not make much difference. The stock should drop about $8 bringing it close to the $42.5 target.
MGO, Migao Corp.
This one is in the Sino-Forest category where truth is simple in the eye of the beholder, certainly when it comes to the analysts who move from ecstasy to utter despair on a dime on even the slightest rumor. Here is the chart from June 14th and today’s.
As you can see , I have changed the count. Like all stocks, or at least most, I assume an A-B-C counter-trend correction into early 2011. Despite the fact that the C did not exceed the top of the A leg , this “fits” much better (click on the charts to enlarge). We got the 4-5 as anticipated and made new all time lows. This may be as good as it gets but another 4-5 is certainly a very real possibility , even if it goes a little higher at first.