Have Canadian Financial Stocks Bottomed?

Canadian financial stocks have bottomed!

Wait a minute….Do you really think I would be brash enough to make such a statement, considering as you know, nobody can predict where the market is going? While I am not signing my statement in blood, the trading action over the last couple weeks including this morning's high-volume rally in Canadian financials has to have one wondering if we have seen the worst for companies in the money business.

See for yourself, take a gander at the 3 month stock charts for Bank of Nova Scotia, Toronto Dominion Bank, and Bank of Montreal. I am not much of a technical stock chart analyst, however I believe these charts may appear to be showing a bottom. Call it an ABC correction, a double bottom, a higher high, a higher low, or a triple sow cow, but they sure look bullish to me.

Readers know I've been wrong before and I'll be wrong again, and they should always make their own decisions based on their own judgment system whether they're a do-it-yourself investor or use a financial advisor.

Does any of this matter? Likely not, but if you've been considering buying a position in a Canadian financial, it seems as though the charts are at least showing overcast skies as opposed to a hail storm….. If you buy them for their dividends, and pay little attention to the noise, these charts can become to you nothing but indicators of sale prices, like flyers or coupons.

In that case March 17, 2008 would have been a great day to be a frugal shopper.

Comments

[Martin Clou...:]

I think these are great entry points for a long-term investor, I don't think they can fall back much more than that, may be up to 10% from these prices but not much more. I own BNS and RY.

2008 Apr 19 08:10 AM

[Football Geek:]

I agree.
The Banks, Manulife, Sun Life, Investors Group, all Look pretty
good for the long term. I own TD, BMO, and RY.
I sent away for a company annual report from BNS. I'm wondering
if they have any holdings in mega growth Brazil, to go along
with their many holdings in South America.
They seem to have more growth in that area then the other banks.
Keith, I enjoy your web page also.

2008 Apr 21 08:20 PM