The last time we wrote about Rational AG was on February 5th. The stock had just reached an all-time high of 740 euro a share in January following a 17-year uptrend. With the price hovering around 690 at the time, new records seemed to be just a matter of time. On the other hand, no…
Ulta Beauty Looks Attractive Amid COVID-19 Recession
In response to the spreading COVID-19 epidemic, Ulta Beauty decided Tuesday to join many other businesses in closing its stores across the U.S. Even without that drastic measure, social distancing was going to hurt Ulta’s business anyway. Sensing where things were going, the market pushed Ulta stock down very quickly. ULTA was trading above $300…
SEIC Stock Enters Elliott Wave Buy Zone
Four months ago, we published an article on SEI Investments (NASDAQ:SEIC), saying that the “stock can lose half its value in a recession.” At the time of writing, November 5th, 2019, the economy was still firing on all cylinders and most analysts saw nothing but blue skies. And indeed, the unemployment rate was at a…
Five Months Ahead of HollyFrontier ‘s Collapse
Oil stocks plunged across the board Monday following an epic OPEC+ negotiations failure. The price of oil was down over 31% yesterday after Saudi Arabia launched an all-out price war. One of the many casualties was HollyFrontier, which we covered over five months ago. HFC tumbled almost 16% to close Monday’s session at $24.10. And…
Disney Stock’s Weakness Exposed by COVID-19 Panic
The coronavirus panic caused indiscriminate selling of almost every stock, regardless of the underlying company’s position. Among the hardest hit blue chip stocks was Walt Disney. The bearish logic behind the 28% selloff is that a big part of Disney’s revenue comes from its movies and parks. People fearful of infection would rather stay home…
Bank of America Lost 30%, but Sent a Warning First
The coronavirus panic coupled with the Fed’s emergency 50 basis points rate cut sent bank stocks plunging very quickly. Bank of America, one of the “too big to fail”, is down almost 30% from its December 2019 high. However, BAC is in a much better financial shape than ten years ago. In fact, the company…
COVID-19 De-Risks Royal Caribbean Stock
COVID-19, or the coronavirus as it is commonly known, is taking its toll on the travel industry. Cruise ship operators are among the hardest hit as ports refuse docking to ships with infected passengers on board. The share price of Royal Caribbean Cruises, for example, is down over 52% in less than two months. The…
Walgreens Stock Dips Below $45 as KKR Deal Stalls
We last wrote about Walgreens stock on November 11th, 2019. Shares were hovering around $62 after news that KKR’s was willing to take the company private. It was going to be the largest leveraged buyout in history. We, on the other hand, were more interested in what was going to happen with the stock in…
Avoiding Boeing ‘s Perfect Storm and 40% Crash
The past year has been a real nightmare for Boeing investors. The stock reached an all-time high of $446 a share on March 1st, 2019. And just when it looked like the sky is the only limit, things took a sharp turn for the worse. Two of the company’s 737 MAX planes crashed within five…
Chipotle Bulls Reach the Promised Land. Now What?
In late-March 2019 we published an analysis, stating that Chipotle bulls were aiming at $900 a share. The stock was hovering around $700 at the time, but the momentum it was gaining made us confident it can rise some more. The Elliott Wave chart our confidence stemmed from is given below. Following a perfect 5-3…
Buying Rational Stock Now is Irrational
Rational AG is a German kitchen appliances and processors manufacturer, founded in 1976. With over 750,000 appliances on the market, the company is one of the leaders in the industry. Not surprisingly then, its stock price has been rising for quite a while now. 17 years ago, in March 2003, Rational stock fell to 25.32…
Salesforce Bulls To Head for the Exits Soon
Salesforce .com stock fell to $2.25 in August 2004. What followed is nothing short of spectacular. Shares closed at $182.31 on Friday, up 8000% or 34% compounded annually. In other words, CRM multiplied investors’ money by 81 in less than 16 years. However, even traditional valuation measures indicate the stock is getting ahead of itself.…
Humana Completes a Pattern it Started 20 Years Ago
It’s been eight months since we last wrote about Humana. The stock was hovering around $260 in May 2019, following a plunge from as high as $356. And while there were plenty of things to worry about, a combination of Elliott Wave and Fibonacci analysis made us optimistic about Humana’s prospects. Instead of joining the…
JNJ Stock Pattern Suggests Uptrend is Almost Over
Despite its top quality, Johnson & Johnson didn’t fully participate in the post-2009 bull market. JNJ stock is up 224% since the bottom of the Financial Crisis, while the Dow Jones added 354% in the same period. However, JNJ stock climbed to a new all-time high last week in a breakout that makes the bulls…
Steel Dynamics Completes Bearish Wave Setup
Steel Dynamics stock climbed 40% throughout the second half of 2019. The share price rose from $25 to almost $36, but that’s after a decline from $52.10 in May 2018. In other words, despite the recent recovery STLD is still down 36.7% in the past 19 months. Can the steel manufacturer stock’s revival continue or…
