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OTC, Opentext update

Hamilton

The usual then, Jan. 2015, and now charts;

otc jan 28 2015 sOTC may 21 2015

Here again we had a wedge, possible also a thrust from a triangle. It looked like the top was in already in January but that , with the benefit of hindsight, was clearly wrong which often happens with these wedges as they should contain 3-wave legs but any two of those is itself also a 3-wave leg. In any event the harm was minimal as the stock only went a dollar or two higher. It would have allowed for a better exit. We still fully expect the stock to reach about $50, the base of the wedge (and the low of the triangle). Then after a solid rebound of $10+ another leg down should start. Wait for the rebound to sell if you have not done so. For those so inclined it should be a tradable bounce.

Bank of England

Hamilton

The name is a bit of a misnomer. The Bank serves England, Ireland and Scotland and , at one point, the entire Commonwealth, that is about 1/2 the world. Furthermore the bank was actually created by an initiative of the Dutch King William and his spouse, the Scottish Queen Mary Stuart in 1694. It’s purpose was to raise 1.2 million pounds for the war against France , this when a million was still a million. It was a private company un till 1946. What it does today is described in a series of “postcards” that are on its website  http://www.bankofengland.co.uk/education/Pages/resources/postcards/postcards.aspx  here are two examples;

www.bankofengland.co.ukeducationDocumentsresourcespostcardspostcardpackwww.bankofenglandQE

The postcard on QE is, of course, factually incorrect by a very serious omission, which is that bank reserves do not automatically lead to “money” as it is normally defined i.e. in the hands of the public. Life at the bank, also known as the Lady of Threadneedle Street, could be rather hectic as this cartoon attests to;

The Old Lady of Threadneedle St - Bank of England - Wik_2015-05-20_10-38-03

The man in the cartoon is Pitt The Younger, trying to convince the Bank to do some more QE. Pitt had become prime minister in parliament at the ripe old age of 24 and always behaved as a gentlemen. Some might argue that at age 24 that is not credible. In any event it is clear that the job at the bank requires not only brains but a lot of social skills. A search a few years ago in England for such a person came up blank but a Canadian was quickly found to fit the bill. This, after all, is what colonies are for. Mark Carney, who is an alumni of Goldman Sacks, Oxford University and runs the full marathon in 3 1/2 hours or so is now the Governor of the Bank of England. He is doing this for a relative pittance of , by coincidence, roughly 1 million , for now at least. We think it will age the man so we show the now and tomorrow photos;

mark carney1sean connery

We hope that Mark’s  brother Sean can convince him to leave his negotiation skill tools in the City by the time he returns.