The Chart du Jour

Fade Merrill on Corning

Aug 29,2000

By, Barclay T. Leib

Merrill Lynch issued a strong buy recommendation on Corning Incorporated (symbol: GLW) this morning, stating a target of $400 per share for the stock. Thanks, Merrill for doing so right on the all-time highs -- how useful. In actuality, if Elliott and Fibonacci techniques are used, holders of Corning should be mentally preparing themselves to SELL this stock not buy it.

Pictured below is the daily chart of Corning going back to its April low. Could one ask for a more classic looking Elliott 5-wave advance? Fibonacci bands suggest that an extrapolated high at just under $320 would make the intervening highs and lows on the way up "fit" the retracement lines in a lovely fashion.


Chart created using GET End-of-Day

Meanwhile, on a weekly basis, the picture is equally as clear, even if the Fibonacci bands are not quite as "tight" and compelling. One can make a case, however that basis the weekly chart, an extrapolated high at $324 might just be it for a long while.


Chart created using GET End-of-Day

So to Merrill we say, thanks for the advice, but your timing is horrific. Will this be yet another situation like Amazon where you maintain a strong buy until the stock has fallen 70% and then issue a "hold" downgrade? Anyone who puts much faith in Wall Street buy recommendations these days is a patsy. Fade this one with sell orders between $319-$324 if you're long, and perhaps long put positions if you want to go short. A short-term overshoot to the upside is of course possible, but even if this transpires, the intermediate term picture will be the same: sell, don't buy.

Please support Sand Spring Advisors and purchase one of our more in-depth articles below.


How Your Articles Are Delivered
Upon the processing of your credit card or the receipt of a personal check, Sand Spring will e-mail you the articles requested as a Word attachment, and also provide you with a WWW address and password to view the article on the web without using Word should you so desire. Confirmation of your order will be immediate, and the actual article will follow by e-mail typically within a few hours and in all cases before the opening of NYSE trading on the following day.>

Ordering by Credit Card:
Our shopping cart is designed for both physical and subscription products, so do not be confused too much when it asks you for a shipping address. A correct address is important only for credit card authorization purposes. Your e-mail information is the most important piece of information to us for proper delivery of your article(s).

Disclosure Statement

Sand Spring Advisors provides information and analysis from sources and using methods it believes reliable, but cannot accept responsibility for any trading losses that may be incurred as a result of our analysis. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, and should always trade at a position size level well within their financial condition. Principals of Sand Spring Advisors may carry positions in securities or futures discussed, but as a matter of policy will always so disclose this if it is the case, and will specifically not trade in any described security or futures for a period 5 business days prior to or subsequent to a commentary being released on a given security or futures.


If you order by credit card, your credit card will be billed as "Sand Spring Advisors LLC"

Should you have any ordering problems, please contact us at
973-829-1962 or by email at the address below:

information@Sandspring.com


Take me back to the Sand Spring Home Page


Comments or Problems


Thank you for visiting Sand Spring Advisors LLC, Inc. We hope to hear from you again soon. For more information on Sand Spring Advisors actual programs, services, or to request a copy of a Disclosure Document, please phone us at 973 829 1962, FAX your request to 973 829 1962, or e-mail us at
information@Sandspring.com

Corporate Office:
10 Jenks Road,
Morristown, NJ 07960
Phone: 973 829 1962
Facsimile: 973 829 1962

Best Experienced with
Microsoft Internet Explorer
Click here to start.

The material located on this website is also the copyrighted work of Sand Spring Advisors LLC. No party may copy, distribute or prepare derivative works based on this material in any manner without the expressed permission of Sand Spring Advisors LLC

This page and all contents are Copyright 2000 by Sand Spring Advisors, LLC, Morristown, NJ