Overview
This newsletter will track and monitor all the publicly announced holdings, as regulated by the regular SEC reporting requirements, of the Warren Buffett investment vehicle, Berkshire Hathaway. These securities holdings will be tracked by our computerized tracking systems to determine any new buy or sell action signals.
Investment Strategy and Market Timing Update
Each 'action alert' and 'buy or sell' signal is based on the concept of protecting trading capital and controlling stock market trading risk. Our best trading results have been generated when the stock market, the market sectors covered in this newsletter and our current cycle analysis using proprietary short term cycles are moving Up. These cycle forecasts offer short term overview of key support and resistance levels in the market indices we track which help guide the short term trading decision making process. When the overall stock market, sectors and individual stocks are in directional movement cyclic down, we try to control risk by observing and waiting for low risk trading opportunities from the sidelines.
Market Indicies Cyclic Update
The major stock market directional movement trend is based on our analysis of the stock market, as measured by the Dow Jones Industrial average. Support levels are price level areas where it is expected that buyers will come in to support that trading level. A convincing break below support levels "Sell Signal" would have that index trading within a new lower trading channel. Conversely, resistance levels are price level areas where it is expected that sellers will come in resistance of that trading level. A convincing break above that resistance level area "Buy Signal" would have that index trading within a new higher trading channel.
Bruno Oscillator: Overbought/Oversold
In major market up and down swings, investments tend to move higher and lower than anyone would ever expect prices to achieve. At times, all of our 'Price and Time' cycles fall into extended overbought or oversold price levels. This condition often suggests that prices should invert shortly if the known fundamentals remain in tact. Selling overbought oscillator conditions are not as risky as buying oversold conditions in that prices can always move lower causing loss of trading capital should it be revealed that fundamentals have changed.
Recommended Strategy
The 'Recommended Strategy' column of each issue consists of your Editor's comments and suggested strategy. These comments should be used as a guide based on the previous studies that the creator of this cycle analysis has experienced. It should also be noted that subscribers could make their decisions based on the Timing Model which consist of the cycles themselves and that the Editor's comments involve the personal element of emotion and tend to be more conservative than the actual Timing Model. We look forward to a long and mutually profitable relationship with you.
