Stocks update 9/2/2015: BIDU, FITB, HZNP, LINE


BIDU: peaked late last year for 5 primary waves up to a C1 top at around $252. Since price has been in a waterfall decline. BUT, last week it hit the 61.8% retrace of ALL of C1. This is often THE ideal retrace level for a 2nd wave of the same degree: C2? We also find a nice c=2.382x a relationship (in yellow). Hence, I’ve labelled BIDU as either having completed C2 or only Primary A from C2. But, if that’s the case, then where will Primary C end…? Hence, I favor the C2 scenario. Let’s see of we can get 5 waves up!?


FITB: It’s been a while since i updated on this bank, but it appears we have 5 waves up off the (yellow) major 4 low for (Red) intermediate i, and now (red) intermediate ii has likely bottomed. Using standard Fib-extensions, we can expected intermediate v and therewith Major 5 to go to the red 200% extension at high $27s. This overlaps nicely with the (yellow) 123.6% extension of major 1, from 2. Since major 3 equaled major 1, major 5 can not be the longer. With a 123.6% extension in total, from around the 0.618x extension, it means major 5 will only be 0.618x major 1; thus fulfilling the EW rule that the 3rd wave can NEVER be the shortest wave in an impulse. From current levels ($19.74) we’re talking max $7/share upside: about 35%. Pretty decent IMHO.


HZNP: so far HZNP has made a picture perfect 3 primary waves up, and may now have completed primary IV, with a typical stab down below the rising trendline, only to reverse hard back inside. The Fib extensions for III and 3 of III are nice, an although IV retraced >50% of all of III, it so far hasn’t overlapped with I, and is thus still a valid count. IF primary V=I, then we can expect a double top at around $39. From current levels that’s $9/share upside: 30%. Pretty decent IMHO


LINE: Did it just bottom for C1? (the chart shows C2, but it’s C1…) We have a nice (yellow) major c= 1.500x major a relationship (the 1.618x would cause price to become negative and is thus impossible). And price has since added at the most almost 100% (from $2.01 to $3.78)… yes at those low levels gains go fast (but so do losses 😉 ) Anyway, keep an eye on it. This may have bottomed for the (Very) long term (years)