CIX, CI Financial

cix sept 2013

We have been wrong on this once before, but that was then, three years ago and this is now. We would sell the stock immediately, if for no other reason than that it is about to double top, always a good place to step aside for a little while. This wealth manager is, of course, 36% owned by the Bank of Nova Scotia. In the background there is always talk that they may want to own all of it. We have no idea and in any event that would be a fundamental issue which really is not our cup of tea anyway.

Elliot, the guy that summarized all the different patterns observed – there are only 13 of them – never endorsed the existence of “running” triangles. However other practitioners have subsequently found pragmatic reasons to add the odd “new” pattern. To me what matters is that it works, that we will soon find out. Assuming this thing exists than the above chart is that of an A-B-C wave B where the  middle B is such a running triangle. If so you do not want to own this stock any longer.