CM , Can. Imperial Bank of Commerce update

cm dec 20 2012

Here is another longer term look at the “Commerce”. The count is not entirely clear but certainly the tangent changes after each set of parallel lines or channels. The green channel going over the entire chart is the level to which the stock might drop if it regressed back to the mean. Wave 3 is steeper than 1 and 5 is steeper than 3. The take-off point, say 1995, coincides roughly with the Greenspan cheap money world. At the bottom there are just a few random events that called for some form of intervention. The least know is the one in 1988 when Wood Gundy was essentially bankrupt having bitten off a bit too big a chunk of British Petroleum. It was a forced marriage between brains and brawn. The dealer had the brains and the bank the dough, both needed each other even if WG was the most desperate of the two. Amusingly is now the only bank that is run by an investment advisor proper! Leason, the guy that killed Barings single handidly , is now giving speeches on risk management.

Just looking at this chart tells you that , should this stock drop back into the green zone it really would not be that outrageous. A sell in our opinion as we are about to enter wave 3 of C