BHP, BHP Billiton Ltd.

Hamilton

bhp

BHP completed a B=wave almost 6 months ago. The rally is a clear A-B-C (same as TCK.A) right into the double top level and the usual Mnt.Everest target of +/_ $100. It dropped roughly 30% from there and has now overlapped with the top of wave A, excluding any possibility of this morphing into a higher 5-wave move. In detail;

BHP 2 BHP 3

The B-wave is as plain as daylight. It does not channel and there is a clear, single break in the upward move. The 30%, so far, drop is a little more complicated. It would appear that we are in a fourth wave of wave 3 down, having completed 1 and 2 but there are other possibilities. In any case the first serious target is around $60.

PHM , Pulte Homes

Hamilton

phm l phm

Homebuilders have been doing just great the last few years. Pulte is right up there with the big boys. Just as in the case of Sino-forest, we know absolutely nothing about this company, and frankly we do not care. This is a buy, plain and simple and the reason will become evident in due time. A full circle bubble AND a nice triangle. We should go back at least to $7/8.Definitely this thing can go a lot higher but one simple should not speculate, take the low hanging fruit and let someone else worry about the rest.

By the way EK should make it to $3.50 tomorrow and if RIM gets another $ or two, sell.