Month: February 2009

BMO CM Feb 19

Hamilton

BMO feb 19

CM feb 19

Speaking of banks, BMO has about the best ratio between high and present price, Commerce is not far behind both at about 33/34% . RY is at 50% so on that metric less attractive if you assume all will some day again trade at the same price, which is true today with 3 of them at about $26.  I think we are at a point where missing the boat is a greater risk than not getting on board. All of these have the potential to rise $20 or so in the next few months so a little nibling is probably a good idea. GE is also a bank!

TSE Feb 19

Hamilton

TSE feb 19

We have to be very careful here, the biggest mistakes are always made after you have been right for a while. It is possible that we are in a bigger and longer corrective pattern. Technically no wave within a triangle should be a 5-wave affaire. There is one here (after the A-B-C up), and this worries me as it suggests that perhaps this all is just a B down to be followed by a C up to higher levels. action on WMT worries me as well. C could go to 10200 or so. At this point I am not embracing this possibility but it should be given serious consideration.

RY Feb 19

Hamilton

ry feb 19

I will go out on a limb on the Royal Bank, it is a buy at $26 or so. That just happens to be a precise 50% from the top at about $62. This is a trading recommendation, not a “buy and hold”. Ultimately the stock can go to about $10 but that is just too ridiculous to contemplate at this point. In the meantime a rebound of 20-30% is reasonable. good luck

CAT Feb 18

Hamilton

cat feb 18

Here is Cat again. This one together with J Deere and Cummings were all predictable basket cases close to the tops. Now the bottom may be closer than the top. Cat has completed, almost completed a fairly clear 5-waves down. If 5 is to equal 1, a normal event, then it should travel about $20 and therefore should end at about $26. An extension cannot be excluded but given the target of about $47 the risk/reward equation fovours the long side soon. DE and CMI, Cummings are in slightly different positions but should also have upward potential soon.

CWB, Canadian Western Bank, where they boast that they finance anything that is yellow and burns diesel, a corresponding uptick might be in the cards soon. The stock is down 62% from $32 to about $11 and appears to be trying to retest the previous low.