Today's excitement over Buffet's purchase of BNI notwithstanding, it looks as though wave [4] is complete as of 2:10pm and wave [5] down of 1 or (A) is underway. The targets posted this morning should still apply. A breakout above this afternoon's high would be strong evidence that wave 1 or (A) has already bottomed and wave 2 or (B) is already in progress.
Wednesday's are quite frequently turn-around days, so if wave [5] is underway, it may bottom during the day tomorrow. A reversal day tomorrow would be strong evidence that wave 2 or (B) up has begun.
Subscribe to:
Post Comments (Atom)
5 comments:
Because of the combination of inside days along with NR7's i think the prudent thing to do is go with tomorrow's breakout.
IF upside action it should also coincide with crossing 5dma's (which "should" not happen today).
Btw, IMO the marking up in price of the other RR's is somewhat silly because i am skeptical of anyone else paying such a premium for RR's as Buffet.
I have a slightly different take on it given my current wave count. I agree that tomorrow should be a volatile day, but what may happen is that we get a downside breakout in wave [5] down which traps the bears followed by a powerful reversal and an upside breakout.
If the reversal occurs mid-day or just after the Fed meeting it could be a great trade for the day/swing trader.
The bulls may be convince that the correction is over and pile in in wave 2 or (B) only to get nailed in the next move down.
Ain't trading fun!
With regard to the RRs, I guess it's great that Buffett's got deep pockets, 'cause he is going to need them before too long.
BTW, the pattern in BRKA is looking very much like a double zz, which supports the view that the rally will continue into 2010. However, I think BRKA will eventually fall 70% to 80% below its ATH, and as much as I like the folksy fella, he will not be so admired as he is today.
I mean no criticism for the greatest investor in US history, but unfortunately he is subject to the same forces that are affecting the rest of us.
Oh, i totally agree with a 5th wave down first. My charts show last low confirmed & that we're in a 4th wave. The tricky thing is whether w5 gets out-of-hand & extends.
Buffett is a fine human being, but IMO overrated as an investor & more a product of his times AND "The American Century". If he was born in 1890, he would have been wiped out.
Post a Comment