S , Sprint Nextel update

Hamilton

s may 21 2011

In January we recommended buying this stock as the e-wave of the triangle was still unfolding. It made a low of $4.12 but lets assume it was purchased at $4.25 so at today’s $5.50 you are up about 30%. The stock should go higher, in fact this is more or less the time when something should happen to accelerate the advance. No idea what that may be, take-over talk, anti-trust rumblings around that other take-over, CRTC meddling or perhaps they will find a way to burn water. Whatever it is it should happen soon. Ratchet your stop-loss up and wait for a sell at about $8.

CL , Colgate another update

Hamilton

cl may 20 2011

Anther possible way of looking at Colgate Palmolive is to assume that the stock has been tracing out a year long , perhaps even longer, triangle. I prefer the other count but it is interesting that the target for both counts is roughly the same. Time wise this interpretation would suggest completion  around mid July but with a high degree of variability.

For completeness the other (two ) counts are repeated below.

cl may 20 2011 2

CCO update.

Hamilton

cco may 20 2011

Cameco would ideally have another small leg down but the possibility definitely exists that the drop is done. A very shallow diagonal may have formed and the triangle shown earlier may not exist. Unfortunately I cannot get the necessary detail on these charts.

cco may 21 2011

My guess would be that we are already on the way up if we break $27.25 in which case the big fat line referred to earlier turned the tide.

R, Romarco update

Hamilton

R may 2011

See earlier comments on this stock. The stock has behaved precisely as expected as pictured again in this schematic and stylized chart. It is just shy of the ideal low of $1.50 but so often in this market stocks turn before they get there. The pattern above, for those that are interested, is most probable an a-b-c X a-b-c wave 2 retracing about 50% of the entire rise from zero, and falling right back to the wave 4 level of previous degree. The pattern is symmetric in every detail (use the mirror, green line and invert the image) which adds confidence and credibility to the view that this one is ready to resume its upward trend. For the sake of 10cts it is not worth waiting. The first target would be $2.21 to close the gap and then  $2.60.  This latter target would be reasonable even in a continuing bear market. By the way, a nice Fibo ratio would develop if it did this. Suppose you buy at $1.62 and make $1 when selling at $2.62 you would have a gain of 62%, all are Fibo numbers.