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…
Spirit AeroSystems Not an Elliott Wave Bargain Yet
In the ten years between November 2008 and January 2018, Spirit AeroSystems stock surged 1373%. The rally from $7.14 to $105.20 made anyone who happened to catch even a part of it quite happy. The following two years, on the other hand, not so much. Spirit AeroSystems is down by a third in the last…
Shopify Investors Probably Believe in Unicorns, Too
Shopify is a cloud-based commerce platform founded in 2004 and headquartered in Canada. Its market cap is approaching $50 billion, even though the company is not yet profitable. We know from history that profits determine a business’ success in the long-term. In the short run, however, investors’ emotions is what makes a stock rise or…
EssilorLuxottica To Lose a Third in Elliott Wave Drop
EssilorLuxottica came into existence in October 2018 after the French Essilor acquired the Italian Luxottica in a $24 billion deal. The merger resulted in the world’s largest eyewear company with a market cap of roughly 60 billion euro. Listed on the Euronext Paris stock exchange, EssilorLuxottica is part of the French CAC 40 and the…
Linamar ‘s 2020 is Shaping up to be a Great Year
Founded in 1966, Linamar Corp. is the second-largest automobile parts manufacturer in Canada. The stock is listed in Toronto and had an exceptionally strong run between 2009 and 2015. In a little over six years, the share price rose from as low as C$2 to as high as C$89.42. That’s 88.4% compounded annually. Unfortunately for…
Time for BMW Stock Bulls to Hit the Brakes Again?
It’s been almost five years since BMW stock hit an all-time high of 123.75 euro a share. Five years for investors to wonder why they didn’t sell earlier. As of this writing, the stock trades near 75.40, down 39% from the March 2015 record. On the bright side, the stock trades near 75.40, up 29.9%…
S&P 500: Last Four Moves Made Elliott Wave Sense
Over a month ago, on November 8th, we published an article demonstrating the Elliott Wave principle‘s ability to predict relatively large moves in the S&P 500. As the move in question progressed we decided to take a closer look into its structure to see what is left of it. The chart below was part of…
2020 to Bring Long-Awaited Relief to Freeport Investors
It’s been a rough couple of years for U.S.-based copper miner Freeport-McMoran. The stock reached $20.25 a share in the first month of 2018. Now, in the last month of 2019, FCX is hovering around $12.10. Despite the significant recovery from as low as $8.43 in October, the stock is still down 40% since January…
Clorox Stock Can Lose 25% if a Recession Hits in 2020
As a consumer products manufacturer Clorox is one of the so-called “defensive” companies, whose sales are generally not dependent on the state of the economy. However, this doesn’t mean Clorox stock cannot fall during a general market decline or a recession. For instance, it lost 57% in the 1999-2000 rout and over 34% during the…
Ubiquiti Can Dive in a 50% Elliott Wave Correction
Headquartered in New York, Ubiquiti Inc. is a communication equipment manufacturer with a market cap of ~$13 billion. The stock is up 85% since its late-August low and is now trading in the vicinity of $200 a share. Understandably, such sharp and fast rallies easily attract people’s attention. Extrapolation of the past into the future…
Disney Stock Forming a Major Elliott Wave Top
The last time we wrote about Disney stock was on April 17th. The company had just announced its own streaming service, sending the price sharply higher to over $130 a share. The interesting part was not the surge itself, but the fact that the Elliott Wave principle managed to prepare us for it a year…
Nikkei 225 Can Lose 30% in Next Corrective Wave
The Japanese Nikkei 225 reached a multi-year high of 24 448 in October 2018. The last time the index traded this high was 27 years ago, in 1991, in the aftermath of the Japanese asset bubble. However, the bulls couldn’t maintain their momentum last year, which opened the door for a decline to 18 949…
Bristol-Myers Stock Pattern Triggers a 37% Surge
Bristol-Myers Squibb and Celgene are expected to merge into a single company before the end of the year. The deal will create the fifth largest pharmaceutical company in the world with sales of approximately $42 billion in 2019. Bristol-Myers fell sharply after the deal was announced in early-January. In late-April, the stock was still in…
Home Capital: Third Wave Lifts Stock 140% in 2019
Home Capital Group is up 17.4% in Toronto today following the company’s third quarter financial report. The mortgage lender beat analysts’ earnings expectations and delivered improvements in other areas, too. In total, HCG is up ~140% in 2019. But things didn’t look so rosy at the beginning of the year. The stock was hovering in…
