Depends on your time horizon. If you look at a monthly stock chart, buying CBA on a -10% dip sounds appealing. You take a 5-year horizon and it still looks overbought.
There has always been talk of a correction for bank stocks, CBA in particular. A week like this has always been coming. I certainly wouldn't be trying to call the bottom just yet. Still massively overhauled relative to its historical average on an earnings basis.
Whats the saying, shares prices climb mountains and fall off cliffs. An analogy for how share prices fall much faster and sharper than they can climb. Wouldnt surprise me if CBA sheds another -5% next week. There are a lot of nervous people who don't want to be liquidated by those who are willing to cash out at these high valuations - all those sellers competing to get out, and buyers drying up as the aura of this stock withers away.
CBA Price at posting:
$151.73 Sentiment: Sell Disclosure: Not Held
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