HCA - Is Healthcare Worth Considering Now? Given that we are coming out of pandemic now and the pressure on hospitals is going to reduce is it worth picking up hospital operator for a potential 30% upside?
Fundamental indicators:
Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years. However, increasing wages are eating into the profits
Profit margin - low margin with 8.7% in 2021
P/E - very attractive 9.9x ratio compared to 22x for the whole market
Liabilities - historically liabilities are on the level with assets, and debt to shareholder equity is negative
Technical Analysis (Elliott Waves):
Since March 2020 crash HCA has enjoyed a good rally peaking in April 2022
The sharp drop from the historic high is indicating that there was an Expanded Flat correction formed with an impulse in wave C
Since then there was a zigzag like movement to the upside which indicates that an Ending Diagonal is potentially forming. However, at this stage it is difficult to predict how the waves are going to develop at this stage
If the proposed scenario is correct we can expect waves 3 and 5 also formed by zigzags and correction in wave 4 intruding into the territory of wave 1
Let's see how it develops further.
What do you think about this scenario for HCA Healthcare Inc ?
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Wavetheory
EW - Is Medical Tech with 40% Upside is More Attractive Now? Given that all the tech companies are experiencing a lot of pressure at the moment is it worth investing into medical tech company with potential short term 40% upside?
Fundamental indicators:
Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years
Profit margin - high efficiency with 20% on average
P/E - quite high with 38x ratio but reduced from 54x in January 2022
Liabilities - no problems with debt
Technical Analysis (Elliott Waves):
EW has enjoyed explosive growth since 2013 and it is clearly visible that this growth cycle is finishing
The last considerable correction was formed by an Ascending Triangle in March 2021
Since then there was was a rapid impulse like movement which has peaked in December 2021. The main question if it was wave 5 or wave 3
Looking at the lower timeframe it is more likely that motive waves 1 and 3 have been formed by zigzags hence we can expect another zigzag of wave 5 after the current Flat correction is completed
What do you think about this scenario for EW ? Do you the alternative scenario where an impulse has already completed is more likely?
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Adobe - Still to Fall or Has It Reached Support Area? Is one of the leading digital media companies Adobe already attractive for investors?
Let's look at fundamentals and technical aspects.
Fundamental indicators:
Revenue and Profits - demonstrated consistent and explosive long-term earnings growth over the past 10 years
Profit margin - impressive 40% in 2021
P/E - still overpriced with 37x ratio
Liabilities - no problems with debt
Technical Analysis (Elliott Waves):
The sharp drop in March 2020 has completed a Running Flat correction that lasted for more than year and a half
Since then Adobe has enjoyed over 170% gain in its share price with a clear impulse movement
Having peaked at nearly $700 in November 2021 it has completed global wave 3 that started in August 2011 - very lengthy growth cycle
And hence it is time for even longer correction than the one we observed in 2018-2020, the duration target is end of 2023
Global wave 4 has already started with rapid correction from the historic high, the potential support levels using Fibonacci retracement are 0.5x and 0.618x, $360 and $280 respectively. But given still quite high P/E ratio it is more likely for Adobe to reach lower level of this zone
Once support is found then we are likely to observe a very lengthy corrective movement in the range between the lower support level and the maximum price of $700, which will provide short term opportunities for bull and bears
What do you think about this scenario for Adobe ?
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Nasdaq - Panic Over and Time to Get Discounts? With nearly 30% fall in Nasdaq , similar slaughter of tech stocks that we observed in March 2020, so is panic sell off over and is it time to buy stocks with strong fundamentals?
Fundamental indicators:
US Consumer Confidence - bounced from the low of March 2022 but still at the lowest levels since 2011
US Consumer Credit- at the highest since 2011, a positive sign, however, this can also be accredited to sharp rise in costs, hence people are spending more and getting less in return
US Industrial Production - also at its historic peak
US Jobless Claims - dropped to pre-pandemic levels
Nasdaq P/E - at 20.9x ratio, lower than in March 2020
Technical Analysis (Elliott Waves):
The sharp drop in March 2020 has completed a Running Flat correction that lasted for more than a year and a half
Since then there was initially an explosive growth which has started slowing down from September 2020 - this is a sign that there is not enough bull power to complete an Impulse and Ending Diagonal is developing instead with 3-3-3-3-3 structure
It is likely that wave 3 formed by a zigzag peaked in November 2021 and now wave 4 is developing which has already intruded into the territory of wave 1 and is nearly 0.786 of wave 3 using Fibonacci retracement
Given all the above it is likely that wave 4 will find support above $10680 price level of wave 2 and will start the final bull run in the shape of another zigzag
What do you think about the prospects of Nasdaq and US market as a whole?
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D. R. Horton - 60% Upside Opportunity? Is there an opportunity for a considerable gain on a homebuilding company D. R. Horton that operates in 31 states, before potential recession in the US.
Fundamental indicators:
Revenue and Profits - demonstrated consistent and explosive long-term earnings growth over the past 10 years
Profit margin - showing higher efficiency every year and currently at 16.5%
P/E - under-priced with just 4.8x ratio
Liabilities - no problems with debt
Technical Analysis (Elliott Waves):
Although it is a complex scenario but it is likely that there is an Ending Diagonal forming in the final fifth wave since the global correction completed in March 2020
Wave 1 with a zigzag culminated in May 2021 and since then second wave has been forming with an Extended Flat pattern where wave C is currently getting completed
Wave 3 is also expected to be formed by a zigzag targeting price range of $111 to $130 representing 0.5 and 0.786 Fibonacci retracement levels respectively
What do you think about this scenario for D. R. Horton ?
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Centene Corp - 25% Short Opportunity? A government-sponsored health care company which looks like it's in trouble.
Is it time to short it?
Fundamental indicators:
Revenue and Profits - although revenue has been consistently growing for the past 10 years, the profits remained consistently low. Earnings (EBIT) are insufficient to safely cover interest payments on company debt
Profit margin - very low at 2% in 2021
P/E - extremely overpriced considering poor fundamentals - 31x ratio
Liabilities - debt relative to shareholder equity is rising
Technical Analysis (Elliott Waves):
This company has survived 2008 financial crisis and enjoyed explosive growth since then
However, the impulse like movement peaked in December 2018 with completion of a global wave 3 and since then it has been forming a complex Running Correction
With poor fundamentals and difficult economical situation it is very likely that wave X has completed and we are observing the development of wave Y to the downside now
There are two options for the final corrective wave - (1) a rapid impulse completing a Running Flat correction as ABC, or (2) complex form of a wave similar to wave W
The target for this wave is in the range of $64 to $57, representing 0.786x and 1x Fibonacci retracement levels against wave W
What do you think about this scenario for Centene Corp?
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Microsoft - Time to Buy the Dip? Still the undefeated software giant Microsoft , top 3 company of the world has corrected for 25%, nearly as much as we have seen in March 2020.
Is it time to buy?
Fundamental indicators:
Revenue and Profits - consistent strong growth for the past 10 years
Profit margin - impressive 35% in 2021
P/E - although still above the norms with 27x ratio it can be considered by many very much acceptable for this highly effective company
Liabilities - no problems with debt
Technical Analysis (Elliott Waves):
The rapid drop in March 2020 has completed correction that has been observed for nearly year and a half and formed by a Running Flat
Since then Microsoft has enjoyed an explosive growth with over 150% increase in an impulse movement
And having peaked at $350 there is another correction developing now
Given the rank of this highly sought after stock it is possible to assume that this correction is going to be similar to the previous one and the depth is not going to exceed 0.382 Fibonacci retracement of wave 3, i.e. not lower than $230, and it will also be shaped as a Running Flat
Duration of this running correction is likely to be longer than the previous one lasting at least till end of 2023 followed by another rocket-like movement to the moon
What do you think about the prospects for Microsoft ?
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AMD - Has Correction Completed? AMD might be a challenger or a leader in some specific areas compared to the competitors like Intel and NVIDIA.
But there is no doubt that it is one of few leaders in a semiconductor industry as a whole and it's here to stay.
The question is - is time to buy the dip having a discount at nearly 50% from the historic high?
Fundamental indicators:
Revenue and Profits - consistent growth for the past 10 years
Profit margin - the company is becoming more effective with a respectful 25% in 2021
P/E - although still overpriced with 54x ratio it has considerable reduced from circa 200 since 2019
Liabilities - no problems with debt
Technical Analysis (Elliott Waves):
According to the proposed scenario since the point when the current correction has started we have observed a circa 50% correction to wave 3
The rapid drop tells us that it is most likely to be an ABC pattern
Wave A of this zigzag was an impulse, wave B formed as a running flat and the current choppy movement resembles an Ending Diagonal where waves 1-3 have already completed
Wave 4 can be expected to be quite deep to wave 3 in the region of $116 and then to be followed by the final 5th wave drop to circa $80 to complete the whole corrective wave and start the new growth cycle
Given the deficits in the semiconductor industry which is currently the main source for the expansion of world digital economies do you think AMD is soon to start the new bull run?
What do you think about this idea?
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NVIDIA - Potential 100% Jump before Recession Hits? The absolute leader in graphic processing units NVIDIA has dropped nearly 50% from its historic high.
Is it still overpriced or is it time to start buying some shares of the giant?
Fundamental indicators:
Revenue and Profits - exponential growth for the past 10 years
Profit margin - very effective, one of few companies with impressive 36%
P/E - still overpriced at 48x, however it has considerably dropped from circa 90x just two years ago
Liabilities - no problems with debt
Technical Analysis (Elliott Waves):
Since IPO NVIDIA resembles parabolic graph. However, there might be few alternative options to count waves using Elliott Wave theory hence this presents additional risks
Presented scenario suggests that after forming the historic high in November 2021 there was a sharp correction of nearly 50%
Few alternatives for the developing wave 4 may include - (1) Flat Correction (ABC), (2) Contracting Triangle and (3) Running Correction
The last scenario has been selected due to the following reasons - as the leader in this sector NVIDIA is still most likely to enjoy increased interest from the investors, as there are not that many growth companies left, and given the exponential pattern of the graph every time the price touches Moving Average investors are most likely to buy all the dips
Risks:
Recession - looming recession is going to have inevitable impact even on the leader of this industry
Crypto - Ethereum's move to proof-of-stake model is projected to reduce the need for graphic processing units. However, Bitcoin and other coins using proof-of-work model are still going to remain the main clients
All of this including forecasts and assessment of the risks will be cleared in the next report planned for 25 May.
What do you think about the prospects for NVIDIA ?
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Tesla - Is Hype Over or Can We Still Expect Miracles from Musk? When there is hysteria in the market, sky-rocketing inflation, geopolitical risks and the slowdown of the economy can Tesla still update its historic high before global correction?
Fundamental indicators:
Revenue and Profits - quarterly earnings are beating wall street expectations
Profit margin - getting into double digits with 17% however it's nowhere near enough effective with the current P/E
P/E - outrageously high ratio of 105x
Liabilities - no problems with debt
Technical Analysis (Elliott Waves):
Since the fall of 2020 Tesla has enjoyed enormous 1600% increase in share price - no one can deny that it's a bubble of extreme proportions
The crux of the Elliott Wave count is the movement between January 2021 and February 2022 - in this scenario a Running Correction is proposed as wave 4
Therefore, fifth wave is currently developing and considering choppy movement it is likely to be an Ending Diagonal with 3-3-3-3-3 structure
Wave 1 of this diagonal has been completed and wave 2 with ABC zigzag is still developing which may reach $756 before turning around and starting wave 3
What do you think about this scenario on Tesla ?
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CARDANO (ADA/USDT) : Close to upside confirmation level at 1,30CARDANO (ADA/USDT) : Close to upside confirmation level at 1,30
Cardano is a proof-of-stake blockchain platform that says its goal is to allow “changemakers, innovators and visionaries” to bring about positive global change.
To learn more about this project, check out our deep dive of Cardano.
Context :
ADA (Cardano) was one of the Top gainer of the blockchain POS protocol in 2020 with solid upside trend on going between March 2020 and May 2021 before developing a non regular Flat pattern between May 2021 and Feb 2022 (Blue rectangle). The current graphical situation is leaning towards a further trading range with an upside swing towards the former top or a start of a significant wave III (Follower for 2022) as many other Protocol Layer 1 Token. On current level ADA didn't confirm any presignal for a direct bullish acceleration from EMA and Fibonacci key level, only RSI is evolving in positive area.
Key Element to Watch (Mixed element on Daily Basis)
- RSI in positive area above 50% (Bullish)
- 0,75 support (previous bottom of the range) is a key Fibonacci triangle ratio within complex range pattern calling for at least a test of 2,50 (Bullish) and also corresponding to standard fibo retracement from the previous upside trend (Bullish)
- EMA are still resistance (Bearish)
- Key fractal fibonacci level not surpassed at 1,30 (bearish)
Key Level To Watch
- 2,50 (triangle ratio)
- 3,20 (auto-similar move - fractal)
- 3,87 (Wave III first target = 6400 ETH/USDT)
- 0,95 (Key support overlap + key auto similar ratio in 3h chart basis)
Tactical View 3 to 12 Weeks
Prefered scenario : As long as 0,95 remains support , add in dips especially if ADA is not able to surpassed directly 1,30 to anticipate the upside break out and play 2,50 before 3,20
Alternative case : Breaking 0,95 better to go away to other protocol token , risk of setback towards 0,52
Bitcoin $BTCUSD as a store of value or inflation hedge?Inexperienced traders will call this bearish candle manipulation. But this is basically a continuation of counter-trend (overall bitcoin is bullish; bull market) in accordance with the Elliott Wave Theory. Simply, we just experienced a bearish impulse where the 3rd wave is usually the longest so we can expect more strong bearish movements as price moves after consolidation. Also, the bitcoin market contrasted with the dollar index (DXY) shows a correlation where both moves against each other which implies as DXY moves higher, BTC will continue to move lower while trying to create new lows.
Do you think price can sweep the lows of $28615?
FB - Even Deeper Correction, Another 60% Drop?With poor earnings report in the first quarter of 2022 and downbeat forecast for the second quarter, rising competition from TikTok - can we expect even further fall for Meta Platforms ?
Fundamental indicators:
Revenue and Profits - consistently strong growth up until now but 2022 may be the first year when the rate slows down which is putting investors off at the moment
Profit margin - impressive 31% last year but will be reducing with growing CAPEX for Metaverse
P/E - already reasonable ration at 16x
Liabilities - no problems with debt
Technically:
Following IPO back in 2012 Meta has enjoyed explosive growth cycle which has culminated in September 2021
All of this movement can be marked as an initial 5 wave impulse and now we are observing the development of the global second wave which is normally very deep and rapid
The structure of the second wave is very likely to be an ABC zigzag where waves A and B have already completed
Waves 1 to 3 of C have already formed and fourth is taking shape as a Running Flat
The fact that this correction is tilted in the direction of trend, i.e. Running, the fifth wave can be quite aggressive and reach circa $96 which represents 0.786 Fibonacci retracement of the global wave 1, or possibly even deeper
What do you think about Meta Platforms and its future?
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CDNS - Another Tech is Approaching Deep Correction?Is it time for overpriced tech stocks like Cadence Design Systems , specialising in software and hardware, to go into considerable correction to let some steam out?
Fundamental indicators:
Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years
Profit margin - 23% in 2021 but dropped from 42% in 2020
P/E - extremely overpriced with 56x ratio
Liabilities - no problems with debt
Technically:
An impulse like correction in March 2020 has completed Running Flat (ABC) wave 4 as part of bull trend that lasted since 2016
Since then the final wave 5 has commenced with 2 impulses that formed a zig-zag of wave 1
This choppy movement suggests that it is not a rapid impulse developing but an Ending Diagonal with 3-3-3-3-3 structure
Hence two more zig-zags can be expected to reach and slightly update historic maximum of $192
Once the global wave is completed a deeper correction can be expected to the levels of $95-$120 which represent 0.382 and 0.5 Fibonacci retracement levels respectively
What do you think about this scenario for Cadence Design Systems ?
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SRE - To Short Energy Company when Energy Prices Rising?Although the world is clearly experiencing energy supply shock and the prices for oil and gas are exponentially rising is it possible for Sempra Energy , producing electric and gas infrastructure to sink?
Fundamental indicators:
Revenue and Profits - not demonstrated consistent long-term earnings growth over the past 10 years
Profit margin - impressive 33% in 2021 but is it going to be as good in 2022 with looming recession
P/E - extremely overpriced at 40x
Liabilities - no problems with debt
Technically:
The correction of March 2020 was formed by a rapid motive wave and more precisely by a zig-zag
Since then the bull run which has culminated in April 2022 was very choppy and very unlikely to be an impulse or ending diagonal
This means that it was a complex wave B of the overall Running Flat correction and another rapid impulse like correction may now take place
In this scenario wave C is normally of the same amplitude as wave B hence the target of $99
Do you think it's possible for Sempra Energy to drop by 70% before the new growth cycle begins?
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RY - Time to Close Long Positions and Short the Banks?Is the largest bank in Canada, Royal Bank of Canada , able to have another push to the upside considering the looming recession or is it time to eject and reverse to short positions?
Fundamental indicators:
Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years
Profit margin - impressive 32% last year
P/E - reasonable ratio of 11.5x
Liabilities - although debt has increased in the last 5 years it is still reasonable for the bank industry
Technically:
The sharp fall in March 2020 completed the global correction since the great financial crisis in 2007
Since then the bull run has been clearly formed by an impulse where the last 5th wave is currently developing with Ending Diagonal (Elliott Wave structure)
The remaining part is the zig-zag ABC to update the historic high of $119.41
Thereafter, it is possible to observe a lengthy and very deep correction to the level of the previous correction $49 or even deeper
Note - in order for this scenario to be viable the price cannot go higher than $122.39. This is because wave 3, following Elliott Wave rules, cannot be the shortest in impulse, hence the constraint on the price level of the fifth wave
Looking at both fundamental positive indicators and potential wave structure what do you think about this scenario?
Are you planning to trade Royal Bank of Canada ?
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MMC - Last Ticket for Bulls?One of the global professional services firms that is still enjoying the bull run but is it for long and can retail investors join it?
Fundamental indicators:
Revenue and Profits - consistent long term growth for the past 10 years
Profit margin - effective company with circa 16%
P/E - overpriced at 25
Liabilities - no problems
Technically:
Following the correction in March 2020 which has completed an Extended Flat wave, there was an explosive growth in the final 5th wave
It looks like the lower degree waves have also progressed to the extended 5th where the final impulse is about to start once the current Running Flat correction is finished
The target for the final wave can be identified by Fibonacci levels and in the range from $187 to $209, which are 0.618 and 1x of wave 3 respectively
Given the next earnings report is in the end of July, this bull trend may last until then
Looking at both fundamental and technical indicators there might be a possibility for short term trade with a circa 20% upside, however risks are growing and it might be better idea to wait for the report and act accordingly.
What do you think about this idea?
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HPQ - Was it Good Bet by Warren Buffett?Following the news about the purchase of 11% HP shares by Warren Buffett in April the price was up by 17%.
Who can question the King but let's have a quick look if it was such a good idea and if the retail investors should follow him or look the opposite way in the short term.
Fundamental indicators:
Revenue and Profits - not consistent for the past 10 years
Profit margin - averaging at circa 7% so it is not impressive either
P/E - very attractive at 6.6% compared to the market average
Liabilities - signs of debt problems with growing liabilities which exceed assets
Technically:
Following the global correction that lasted 20 years and took shape of Contracting Triangle we can observe 5 wave impulse since March 2020
This impulse is at the final stage with completed waves 1 to 4
The 5th wave is forming now in the shape of Ending Diagonal which can be explained by the choppy movement
Once the final wave updates the current maximum of circa $42 there might be a sharp drop in the first corrective wave to the region of $20 to $25 representing 0.382 and 0.5 Fibonacci retracement levels respectively
Given the rising risks of global recession and mediocre performance of the company, was it a good idea for Warren Buffett to get into this deal or is there some insider information that we are missing?
What do you think about this?
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Waste Management - Time for Big Short?Although not a 'sexy' and popular tech company Waste Management has enjoyed an exponential growth for the past decade.
Is it time for this bubble to burst?
Fundamental indicators:
Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years (124.63%)
Profit margin - not impressive but decent 10.30%
P/E - quite overpriced at 36x considering this is not a growth company
Liabilities - no problems there
Technically:
Although the share has enjoyed good growth since March 2020 fall, another considerable drop in 2022 has completed a lengthy and running correction of Wave 4
Since then there was an Ending Diagonal developing and only last wave C of 5 left
After slightly updating the high it is possible for the price to go into long term correction with a considerable drop in the first wave
The target is likely to be the range between $85-$105 which represent 0.5 and 0.382 Fibonacci retracements respectively
What do you think about this scenario?
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Amphenol Corp - Possible 25% Upside?Not a well known company Amphenol Corp producing fibre-optic products which has surprised market expectations in the last earnings report and may have a good upside for short term investors before global correction.
Fundamental indicators:
Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years
Profit margin - is at circa 14.6%
P/E - a little overpriced at 25x
Liabilities - no problems there
Technically:
Following the correction of 2020 which has completed the Expanding triangle, a new 5 wave impulse was developing
Waves 1-4 however have formed already with the last one as a Running Flat
And it's time for the last impulse or diagonal to follow
The target is likely is to update the current high of $88.33 which can make a healthy 25% in a short term
What do you think about Amphenol Corp , is it able to make the final push for the historic highs?
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BITCOIN - To The Moon or Into Deeper Correction?It is certainly difficult to predict the next move for Bitcoin but one of the alternative options is the beginning of a new cycle which may accelerate the price growth of the crypto giant.
Few points to support this idea:
The global count indicates that five wave impulse has been completed at the peak of April 2021 - chart is to be shared as an update to this idea
In this case the movement between April 2021 and January 2022 is a Running Flat correction which perfectly completes global wave 2
Since then the coin is at the stage of accumulation having formed wave 1 of global wave 3
And now wave 2 may possibly take shape of another running correction which is typical before an exponential rally
All of this is a raw scenario at the moment until we get a confirmation breaking the levels of 48,189 or 32,917.
So let's wait and see what our favourite Bitcoin brings us.
What do you think about this scenario?
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