Ok, few stocks.
I made this Clorox some time ago but since doing it did retraced up now approximately 50-61.8% which of cource can suggest B wave for it. It is possible stock top is placed with first corrective reactionary wave also and it is starting long base but potentially also very time consuming correction. Ending diagonal it does not have to offer.
Henry Schein. Not so good divergences to determine it with potential same EW set but IF 50 – 61.8% B wave as similiar would come, I would expect it to offer something for downside as C wave comes then possible.
Overall, I am actually still very neutral and not necessary expecting to see anything dramatic for index before Sebtember meaning market can zig and zag between this 1180-1200-1220 for longer that we think.
Possible double bottom for 1100 might be ahead but I think this could be floating until sebtember comes and holidays are over. If going very bearish 860-950-1050 are kind of ultra I could imagine, I don´t expect another financial chrisis because most of the Dow stocks and SPX stocks also looks actually pretty neutral for me but we might have very long base slow correction ahead.
My local market came down -35% since starting downroll first of May 2011 giving zero bounce in the middle and our industrial stocks yields now allmost +10% with PE´s of 10 to 15. These stocks are heavily depend of Chinese Export while we build their factories and facilities. We don´t have much anything else as these industrial stocks in our minority european stockexchanges ie. highly cyclicals.
DowJones is now down -1,7% while names McDonalds, ColaCola and IBM are trading at all time highs and I see no any reason why they should be bearish ?
Having said this possible for long base flat market / correction downside might be the issue for 2012, but with-in that you need to know your stocks a bit. At least I haven´t found so many ultra-attractive bear cases while walking SPX500 lists, there is some but not all. We see if we live, a lot of will be also determined if this market takes fifth wave down.
Now to sleep.
