Berkshire Hathaway Buying Climax?
One of the stock screens published on Fridays is called Buying and Selling Climaxes. The idea comes from Don Wolanchuk who stated; when a stock makes a new 52 week high and then reverses and closes lower, it is a sign of distribution. The stock is going from strong hands to weak hands. The reverse would be true for a selling climax.
You may recall that last week, on the fourth to be exact Buffett Loses Last AAA Rating as S&P Cuts Berkshire. In addition you may or may not be aware that when the deal to purchase Burlington Northern closes BRKB will replace it in the S&P.
Now going back to the buying climax screen, both the class A and class B stock had that weekly reversal off a new high. Here are weekly charts of both classes of stock. Circled is the previous weekly reversal off a new 12 month high for each; notice what followed. Will it happen again?
Of course an interesting exercise for you to do is pull up a daily chart of either or both and see if this weekly reversal may have been caused by the S&P move or would it have happened anyway?
Members wishing to access the screen (In Microsoft Excel Spreadsheet): Click Here!
ETF Range Projections & A Quote to Start the Day
Little men with little minds and little imaginations go through life in little ruts, smugly resisting all changes which would jar their little worlds.
– Zig Ziglar
For more detailed economic data click “Today’s Calendar” in the navigation bar to the left.
Overseas markets are beginning the new week with Asia on the weak side and Europe flat: Nikkei 225 -1.05%, Hang Seng -0.58%, Shanghai -0.14%, DAX +0.12%, and the FTSE 100 -0.27%.
At about 7:35 AM ET, without any big news due out early, the futures are drifting lower with the exception, for now, of Oil and Gold: Dow -57, S&P -6.8, NAZ -6, Oil +$0.24 and Gold +$15.80.
