The gap is now closed and we are approaching, possible, a 4th wave of previous degree.  The RSI is getting overbought and things are getting to be “too good to be true”. We would exit today if it was our money. 4x your money in 40 or so days is not bad.

I am not a great fan of Warren Buffett. Using your persona as a way of creating “investment” results ranks with me on a par with getting your book on Oprah’s list of books to read. It does not mean that you have suddenly become a good author. Moreover Oprah does not necessarily gain, at least not as much, as does Buffett from his fame. So far about $400 mln. but that is just on paper. Lion hunting in a zoo?

The G&M attributes the discovery of this opportunity to an octogenarian with contacts with the Bank of Montreal  – we think that Buffett simple is an avid reader of this blog – which just happens to be one of the banks that was charged with finding a solution. Not sure that this is the way it should work but no doubt the OSC, which arguable is partly to blame for the loss of confidence in this bank, is right on top of this and happy with the “progress”. It will, for the first tranche, require the use of a “financial hardship exemption” under the TSX exchange’s rules, a mechanism that makes highway robbery perfectly legal.

The repercussions of this deal may, repeat may, make the stock price at about this level more or less fair, so we would exit today and be happy that we got both the top and the bottom (see 2012 blogs) essentially right.