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Ramki Ramakrishnan's  Instablog

Ramki Ramakrishnan
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I am a treasury manager and Elliott Wave specialist with over 30 years of market experience. I have worked with some of the best traders in the world, hedge fund managers and extremely wealthy individuals. My Elliott Wave comments have enjoyed a worldwide following for over 30 years, and I... More
My blog:
Wave Times
My book:
Five Waves to Financial Freedom: Learn Elliott Wave Analysis
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  • Elliott Wave Analysis Of Alliant Energy Corporation (NYSE:LNT)

    Alliant Energy Corporation (NYSE: LNT) has been part of David Van Knapp's Dividend Growth Portfolio since 2010. In his article in Seeking Alpha, David celebrates the 6th birthday of his portfolio and showcases the stocks that go into that portfolio. The first stock in the list of 18 stocks is Alliant Energy Corporation.

    As most of you know, I look at stocks from an Elliott Wave perspective first, and so decided to do a detailed study of Alliant Energy Corporation. Elliott Wave analysis is a method that many professional investors embrace because it gives them several clues about where in the market's progression we currently are. Briefly, Elliott Wave Analysis says that all impulse waves are made of 5 waves, and once a five wave movement is completed we should expect a correction.

    Alliant Energy Corporation's Elliott Wave charts reveal that we are in the fifth major wave higher, and within that fifth wave, we could potentially be in the fifth sub-wave. Usually, investors should start planning on a strategy to exit their holdings during this fifth-of-the-fifth wave. However, with Alliant Energy Corp the story is slightly different. The first and third waves that we have seen so far were both of normal proportions. Besides, the two corrections in wave 2 and wave 4 positions were both relatively brief. This leads one to anticipate an extended wave 5. So, we might as well be patient and wait for a move to around 60.50 before we take a fresh look at this stock. What follows are a set of 11 Elliott Wave charts of Alliant Energy. Study them carefully to see how the market seems to dance to the magic wand of Elliott Waves. You may also want to check out the hundreds of Elliott Wave examples and thousands of charts at my other blog wavetimes.com, and also at my website wavetimes.net.

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    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jun 01 8:32 AM | Link | Comment!
  • Why You Shouldn't Rush To Buy McDonald's
    McDonald's Corp (NYSE:MCD) on Thursday reported global February sales at established restaurants that missed Wall Street's target, primarily on European weakness, and warned that economic uncertainty could hamper profit growth, sending shares down more than 3 per cent.

    As many of you are aware, this stock has been on a dream run in the last few years, and was one of the best performers in the Dow last year. However, there were some warning signs that was evident to the Elliott Wave analyst. On January 4, 2012, I had posted an article on Forbes why McDonald's dream run was almost over, urging investors to get out of the stock on any recovery back near the high seen until then ($101.45). The stock posted a high at $102.22 on Jan 20, and after a few days of sideways movement, during which some distribution has taken place, it has finally broken down.

    Some of you might be tempted to use this dip to add McDonald's to your portfolios. However, I would urge you to be patient because the stock could go down to around $87 in a relatively short period of time. You might see a brief recovery from near $92.10, but I very much doubt if it can get back past $98. In fact, if you are still long of this stock, use any direct recovery near there to exit because another bad report from McDonald's will send the stock down to $74.

    Elliott Wave analysis of McDonald's Inc suggests that a five wave rally from the March 2003 low of $12.12 has been completed at the recent high of $102.22. Even if we take a 23.6% retracement as the minimum correction of this mammoth rally, we will get an objective of around $81. Of course, it is not going to be a straight line move, especially given the fact that there will be buyers at various levels as we move down. But the patient investor who can wait for the sweet spot will be amply rewarded. -Ramki Ramakrishnan, www.wavetimes.com

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: MCD, short-ideas
    Mar 11 8:09 AM | Link | 2 Comments
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