BRK.B has followed the market higher since Feb 11th, I am setting alerts early. We will see if the market correction since the beginning of 2016 was only a dip to be bought, or an early warning sign of a bearish trend unfolding in the months to come. Similar health checks can be done with SPY:IWM, COPX, FDX, TLT, HYG, FXY, UVXY.......
$BRK.B gapped up above a daily downtrend line yesterday following Warren Buffet's letter.
The trend line, that started back in November 2015, was broken but the price was rejected from the 200 SMA line and the completion of bearish Bat pattern.
Now, $BRK.B price needs to prove that the breakout is real.
1. It must close the week above the daily downtrend line....
Do not short yet on open hours, Ride the last bit of bull first.
But get ready to short anytime starting monday or tuesday.
- Bearish divergence
- high RSI
Entry point at 78,6% Fibo of XC
SL little above X (in fact a strong breakout at the resistance line could be a signal for closing this position)
TP at 61,8% Fibo of CD leg or even lower, because this is a trend following Cypher Pattern
Just an interesting study using arcs and Fib retracements. Using BRK for an overall proxy for our markets to gain insights as to if we may be nearing a generational top.
This chart suggests to me that we may be closer to some sort of top than we are to the beginning of a new secular bull market as some have suggested.
Berkshire Hathaway BRK.B has been lagging the Transports (IYT) lately and it looks poised to catch up or the Transports look ready to "catch down" to BRK.B
The spread is roughly 20% in performance over the past 8 and 4 months and presents a low risk way to capture returns without market-specific risk.
BRK.B 126.68 -0.50 = BUY
IYT 146.78 -0.15 = Sell Short
Risk...
Berkshire Hathaway Inc. $BRK.B, Warren Buffet's company has an ugly head and shoulder pattern forming on the daily chart. Considering this company owns a little of everything, it is a very ominous sign for the global economy. Head and shoulder patterns are bearish patterns, predicting steep drops. The key break down level on Berkshire Hathaway is $111.00. If it...
Accumulation up... check... MoMo up... check... major trend line test... check... For the past year every time it has hit this line it bounces... will we get confirmation today? If so I am adding to my position... Concerns around EMA lower than usual on tests... and Stoch looks negative...
Bet -> Stock price remains beetween 120 & 105 for 34 trading days . (46 calendar days)
BTO 4 125 AUG Calls
STO 4 120 AUG Calls
STO 4 105 AUG Puts
BTO 4 100 AUG Puts
Upper Stop @ 119.40 ( .5% below short call)
Downward Stop @ 105.52 ( .5% above short put)
* for educational purposes only
