I think we just broke the handle on this cup. Please comment. TSX:BNS
looking to buy at the line at support should be around christmas time december hopefully
Earnings in 4 days...if BNS meets or beats, it goes to $68 and potentially higher to $79
www.fool.ca HCG Contagion idea
@1:49 pm dark pool activity @55.3 pin#
BNS has been tightly correlated with CAD since July 2014. Specifically, the relationship appears to be: (daily % change in BNS) = 2x(daily % change in CADUSD) CAD itself is correlated with oil. I originally planned to buy CAD for an upcoming oil rally. But I ended up buying BNS instead. It pays a 5% dividend.
Recession scenario is a repeat of the 2008 drop bringing the optimal entry target to $45 CAD with a retrace sell target anywhere above $68.
As someone with BNS holdings I am going to be cutting back my position and taking profits. Why? The main reason is illsutrated in the chart above, the stock has had a tremendous rally in recent months and is now trading at a 10% premium to its 200D EMA. Since 2013 there have been two other instances where BNS was trading 10% over the 200D EMA and over the...