CIBC: Another case of buy the rumours, sell the news

Today CIBC (NYSE ticker symbol: CM) announced their 2009 Q3 results. The day before, CIBC shares were testing \$63 (in the states). Today, after the announcement, CIBC opened at \$60.94.

Before the open, Bloomberg (for example) had this headline, CIBC Profit Rises Fivefold on Capital Markets. Note the wording. This is not the same as profits is five times as before. Did they hire a lawyer to write this?

After the open, in which CIBC (CM) shares gapped down about 5% (!), headlines such as Toronto Star's [TSX falls on CIBC earnings][] began appearing at 10:30am.

Edited: Before I finished writing this, Toronto Star updated the above headline to read [TSX rises as U.S. housing numbers balance CIBC earnings][TSX falls on CIBC earnings]. Ha! Tell that to the people that bought into CIBC at the open on the earlier story. CIBC is still trading below \$60 at this point. Although they would probably think CIBC is "cheap" now that it's below \$60 with its "profit rising five fold".

The stock market tradition of buying the rumours and then selling on the news for a stock is well known. Think of it this way, if CIBC is tanking on this positive news now, what event do you think in the immediate future will lift its price up? Also consider that CIBC has run from \$27.50 in March 2009 to \$65 in July! The selling and profit-taking pressure is simply humongous on CIBC at the moment.

However, what I found amusing is the flip-floppinge of tone of the media (I guess I should get used to it by now, but no). One moment they're spinning the story this way and before you even got through the page, they're spinning it another way.

This is yet another illustration of why I think most of the financial mass media are nothing more than glorified advertisements.

Update 11 am: Bloomberg changed their headline on that first link to "CIBC Profit Misses Estimates on Loan-Loss Provision".

Update 12:30pm: CIBC broke below \$59. If it breaks below support at \$58.42 (Figure 2), then \$52.50 is just a breath away in this roller coaster ride.

[caption id="attachment_1730" align="aligncenter" width="499" caption="CIBC"][CIBC][][/caption]

[caption id="attachment_1739" align="aligncenter" width="500" caption="CIBC"][CIBC][][/caption]

[TSX falls on CIBC earnings]: [CIBC]: [CIBC]: