First recommended at about $2,40 in March of 2009, sold after a solid double but still maintaining a likely target of $8. It met that target quite nicely and then started treading water for about a year. Then we got the second up leg. Today all three waves, A,B and C are pretty well vector equal. C is a little short so it may yet continue its climb and may add a dollar or so over the next month. You can hope and wait for that or simple exit the position .
You could do all your trading with just these two ETFs. The Horizons X(TSX) D for down or U for up. They are leveraged so one should not go overboard but otherwise they do most of what is needed. Here are the charts;
The HXU, the bull one on the left could have been bought for $8 at the lows in March, today it is at $24 and appears to have completed an A-B-C of sorts. The HXD, the bear version is on the left and seems to have completed an A-B-C as well, ending with a pretty nice wedge that seems to go on forever. Today it hit a low of $8.03 and even though one cannot be absolutely certain, it is clearly a buy at these levels and should trade towards the $20 level and perhaps a lot higher!
The wedge , in detail , is below. It is the 5th of the 5th which is the wedge so do not confuse the two charts.
No position in Nvidia Corp., just showing it for the beauty of it all. We have shown at least a dozen or more B-waves over the past few months and this one is worth adding to the list for its pure perfection. The stock drops from $40 to $6, clearly a bit of a bear market; furthermore it does so in a very distinct 5-wave move. From the low the stock has rebounded 62% and right to the level of the 4th wave on the way down. Moreover, wave c and a in this rebound are vector equal. Next move should be to the downside. Given a p/e at nosebleed levels that is not a big stretch.
To get some idea where this market might be going, it may be worth looking at BRK, after all that is a company run by the undisputed, best value investor ever. Some grown men jump through hoops just to get their picture taken with the sage, hoping, perhaps, that somehow some of the wisdom will rub off on them. Here is the chart;
First of all it is clear that the Sage is just as bad as everyone else in avoiding crashes. Even before the tech crash his stock had dropped by 50% (he does not invest in tech, so one might have thought that he would skip the whole thing. Not so he was even early. Again in 2009 the stock drops about 50%, on a par with the S&P etc.etc., making a low in March. What is different is that the stock goes much higher, nearly twice as high in 2008 compared to 1998. Most other markets (except, for instance,Toronto), more or less double-topped at best. in a way this supports the argument that the two down-legs are NOT both part of a single structure(a flat). From the March lows the stock retraces about 76% before hitting the parallel trend-line. This is precisely where the Dow Jones is at today’s close (roughly 12400) . Time will tell if this is it. If it is wave C down should now take the stock to about 40,000, the “normal” retracement level.
By the way, wave 5 of 5 is an extended wave, a normal occurrence in at least one of the three up-legs. The leg stretches as it were and travels a disproportionate distance (about 40,000). Without the extension the stock would have been contained inside the channel (purple).