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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: estatemakr who wrote (8505)	12/6/2007 10:52:36 AM
From: John Pitera	Respond to of 33421

I've seen and successfully predicted this type of measured move based on basic Edwards and MaGee type price projections for years. Companies that have high expansion and growth rates can go into years of contraction due to pushing the envelope too far. There are always things that can go tremendously wrong. What if WMT if penalized for the widespread use of undocumented workers/ illegal aliens by a populous and US Government that has undergone a marked change in view of such matters in a year or two. I have no position in WMT. IBM went down 75 percent from the high in 1987 into 1992-1993. But looking at WMT's chart a bit more closely it's made 3 higher lows in 2005, 2006 and 2007 so that is not nearly as bearish as 3 years lows all at the same price. I'll start to study WMT a bit more and we can monitor it over the next few quarters. on a trading basis I would short WMT north of 49,where it is trading, preferrable at 50.00 as it will probably hit that in the next few days and put at stop on the short at 51.55. looking for WMT to trade back down to 45.00 to 43.00. and hey go long on a two day close over 51.55. John