Wal Mart is a Go

WMT closed above 68.80 today so the trade is on.  Although the Elliott pattern did not go exactly as I expected, it stayed within the needed parameters so that we can expect WMT to have another up leg over the next couple of months.  Target is 72-74.  Place a stop at 67.45.  

Walmart has a nice 1-2,1-2,1-2 elliottwave set up including an impulse wave with THREE 61.8% retracements.  In addition, it is at 50 week MA support and 18 month weekly trendline support (2nd chart).  Target is 74 in 2-3 months.  A close above 68.80 indicates it is a go.

Resounding Failure

Wow, that was just about as bad a call as one could make.  One day later, stopped out on CLF.  Oh well back to the drawing board after a painful drawdown.

DD took awhile, Next CLF for 40% gain

For the Dupont prediction I was right and I was wrong.  It recently hit 42 but instead of taking 1-2 months, it took 4 1/2 months and we got stopped out at 50.70.  If you are joining in on a trade, please send me an email and I will update the page or communicate directly with you as things develop.  

Next we are looking to CLF which has 1. Multiyear trendline support, 2. recent hammer candlestick, 

3. long term RSI and MACD divergence and 4. probable Elliott wave flat correction since September.  Target 50, Stop at 32.20 for potential gain of 40% with risk of about 10 % loss.  This should take about 2-3 months.

Short DD

This is an 80-90% probability trade.  Short Dupont.

Dupont (DD) has been maintaining a pattern of lower highs since early 2011.  There are numerous technical factors strongly suggesting that it will lose about 15% of it's value over the next 1-2 months.  In June it made a 61.8% retracement of the drop it had from April to early June and since mid June has done another 61.8% retrace, very classic Fibonacci ratios.  Click on the attached chart to enlarge it and to see additional information.

BA success, next CSX

Since the last post, my prediction of Boeing rising from 64 to 68.75 occurred though it took about 3 weeks. It rose to about 73 and still has strength, but I am unsure of it's next move. QQQQ moved to 57 as I suggested. Next I am looking at CSX which has many technical factors (see chart) suggesting that it should go to around $73.50 with a few weeks. It's last trade was 69.70. March 70 call options now selling for around $1.90 should double. Buying the stock outright should result in around a 5% gain.

BA to 68.75

Back in August when I strongly suggested that the markets were about to turn over and the next bear leg was beginning, I was wrong. I mentioned that if the QQQQ moved with strength above 47 that the downside was off for the time being. Upward momentum is now waning, but I believe there is still potential for a few percent rise in the markets. The Dow Industrials may be looking to touch the 11,750 range which was the 2000 high. On the short term, Boeing (BA) has a decent looking Elliott wave form and some short term upward momentum (caveat.... daily momentum has not turned up yet). I predict that BA will move up to 68.75 within the next week or two. Next target for the QQQQ is 57.