Weekend Update- FTSE, RIMM, LEXR, TALX, CEDC
London Financial Times Index (FTSE) - Daily chart
As you can see from the daily chart the FTSE is now trading at 4 and half year highs at 5893.33. I am bringing up the FTSE chart to discuss Point Counting and Elliott Wave. The higher the FTSE goes the more the point count changes thus invalidating previous Wave Counts. If you look at the FTSE chart fore example, let us say that wave 1 to 2 is from 4994.10 (1)to 4773.70 (2)and then wave 3 to 4 is from 5515.0 (3)to 5130.90(4), and that we are now on to the top at wave 5 at 5893.30. Now let us count points. If you count the points from wave 2 to 3 you get 741 points. Then if you count the points from wave 4 to 5 you get 762 points. What does this mean? This means that the FTSE cannot be at the top because the point numbers from the assumed wave 4 to 5 exceeds wave 3. Remember wave 3 is always the longest wave. Therefore, the FTSE cannot be at wave 5 because the last wave exceeds the points of the prior wave. When points exceed a prior wave the wave count has to be changed. Ultimately, we cannot be in wave 5 but rather in wave 3!
Research in Motion Ltd (RIMM) - Daily chart
RIMM is not in the portfolio. However I want to update it because a lot of trending 123 members own it. Since November of 2005 I have been advising traders not to short RIMM since the mid 50's. As you can see it is trading in an inverted head and shoulders pattern. Where is it now? Well, it recently hit new 52 week highs at 78.38. After hours it is up at new 52 week highs above $85.00.
Lexar Media, Inc. (LEXR) - Weekly chart
As you can see from looking at the chart LEXR is also in an inverted head and shoulders pattern. I am not suggesting this as a buy right now, but I want to bring it up because it affects SNDK and we own SNDK. Well, when I look at this chart it is starting to look bullish. It reports today. That should be good for SNDK.
Talx Corp. (TALX)
The daily chart of TALX illustrates that it is an ascending triangle pattern. It has recently finished a wave 3 to 4 correction when it place the lows at $27.82. Indicators and oscillators are in a bullish trend reversal. TALX is now trading at $34.03. Tomorrow TALX has another conference. All I have to say is can we please rally now!
Central European Distribution Corp. (CEDC)
The daily chart of CEDC illustrates that it is an ascending triangle pattern. Indicators and oscillators are in a bullish trend reversal. However, CEDC is down 0.72% today at 41.13 and it may pullback more down to the uptrend line. If it does that, I would buy more around the 39.00 area.
Bottom Line: we are still climbing the wall of worry. The top is not in.
