Friday, February 10, 2012

Things go better with Rum and Coke

If this chart is as prescient as it looks then make mine a double rum with my coke (er, diet coke).
What we have here is a weekly chart going back to the last bear market. Major patterns are labeled and right now it sure looks like the carbonated essence of the coca leaf is going to get busted.

Measuring the pattern height and projecting it down from the presumed break point, the target could be near 60 and that corresponds to the 2009 peak. It would also be roughly a Fibonacci 38.2% retracement of the bull market.

Seven or so points does not look like much but it would be a 10-11% haircut. And the dividend yield would be sweet at that price, too!

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