Tuesday, January 8, 2008

TD Bank follow-up January 8, 2008

TD bank stock is close to an interesting milestone. If it breaks below the $64 dollar level this makes a much lower price drop more likely (not guaranteed).

I have been following Canadian Banks for some time. Bank of Commerce and Bank of Montreal have both seen a large price drop so far. My best guess is that we will see similar drops in all Canadian Banks. They have all had an excellent Bull Market run for many years and a large price drop (Bear) would still qualify as normal market action.

Today's news includes a "rumour" that TD may be exposed to the US Subprime Real Estate problem. This would not surprise me as TD has been working on getting a foothold in the US Banking industry. This rumour could lead to a break below the $64 level which in turn could lead to much lower prices to come.

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