All,I agree with Ultra on the count so far on CBA - however it...

All,

I agree with Ultra on the count so far on CBA - however it is a most frustrating stock at present and seems to be going through another one of its "long flat" Wave 4's (as we saw it do so well last November to January). Unfortunately I am locked into a large derivatives position on this stock and, like Ultra, am looking for a dip down to exit some of the position before reseting into a long to take advantage of the expected Wave 5.

All of the Banks are tracking similarly and I must admit that I was amazed today at their strength in the face of such overwhelming overseas weakness. If Wall St has another bad night, I will be most interested if this trend can be maintained (or there is a catch-up decline) as the Aussie banks are now entering overvalued territory against their overseas counterparts - last report I saw placed them at about 6% overvalued against the US banks and 9% against the UK banks. I note that the UK banks are all down about 1.5% at the moment in London.

We shall saw - as I said to my broker today, you need absolute patience here and you cannot do anything but wait for a break to show you a trend. The one thing I do Know viz CBA (and NAB for that matter) - after this period of flat consolidation, the movement that follows will most likely be fast and hard.

Regards,

Jaysee