SLF, Sunlife

The not so usual part 1 and part 2 charts;

           slf part 1 feb 2016    slf part 22 feb 2016               

On the left are the guys that bring your fat cheque right to where you happen to be on the beach in the Caribbean or on the golf course. They are the wealth managers of the future and do life insurance on top of that.

They demutualized in 2000 and basically took off by tripling, peaking in 2008. Had I told you then that the stock would almost return to that starting point, that is lose 2/3 of its value you would not have believed me.

Just for fun I brought up another chart. At first blush you must agree that they look pretty similar. So if now I would suggest to you that this stock might lose 2/3 of its value, you would, again, not believe me.

So here is what we are looking at;

slf  10 feb 2016

There is a small difference between the 2008 drop and the one that is coming. The first drop was an A wave in a “flat” which consists of an a-b-c all though the b is often barely recognizable. The coming C wave should be a straightforward 5 wave sequence without any b or pause. It should, if anything , go down faster. Why we do not know but China may be part of it.

SLF, SunLife

SLF aug 6 2015 bslf aug 6 2015 s

We had not anticipated that wave 3 of c would extend. It did. But now we have a clearer picture. Both the a and c up legs of the B wave are roughly equal in magnitude. Time wise the c is at least 5 or 6 times as long. There is a near perfect triangle which has to be a 4th wave of c. Using the measurement of the triangle and also the gap-in-the-middle tool the target should be about $46. We would sell at , say, $45.75.

SLF, Sunlife

slf aug 21 2013 bslf aug 21 2013 s

Sunlife has almost retraced 62% for a second time, not good if you own it from >$50. But very good if you own it from 2001 when the company demutualized at about $10. A three-bagger in 13 years is , after all, a great investment. If EW shows the way things do not look that hot going forward. There are, as always, alternative more bullish possibilities, but this count as shown above looks to be the most plausible. A big C down should start soon.

SLF, Sunlife update.

Then (twenty days ago) and now charts;

slf dec 1 2012 bslf dec 20 2012

We anticipated that the stock would climb to between $27 and $28. It hit $28 and reversed. Since there is overlap either this entire scenario is wrong or it has to be an expanding diagonal. We will go for the latter option which would then imply that this stock is now in its 5th wave down on the way to a new low. The message, though slightly different, is the same for MFC.