It is hard to believe that Berkshire Hathaway, the largest component of the XLF sector ETF for the financials has not tested its 200-day moving average since 2012. Back in 2010, readers will recall I was wildly bullish on Berkshire and even held the name as a long-term investment for several years, only selling recently.
In addition to Berkshire, MasterCard was another long-term bullish thesis I had back in 2011. Recently, though, the stock began to unwind from its extended conditions.
And, on the daily chart below, note the potential for a well-defined support breakdown.
What are you trading this morning?
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In MNGA awhile back. May add some if it behaves.
Nice
Going short the market with the stocks that are the most extended. My favorite is TSLA, but there are many more.
I think AAPL will be the tell over the next 2 days.
Nice, blarggh.
AMZN short – highly likely AMZN and Tencent are the two people sell to make space for Alibaba + an Apple mobile payments platform announcement could add more negativity
Same here.
do you think an AMZN or TSLA short makes sense here Chess?
Thank you!
Favor AMZN
Speaking of over extended. The Dixie has gone parabolic. Once the air in that balloon pops, this market is going to fall hard, imo.
Considering buying GDX after the huge plunge I’m expecting sometime over the next week.
Completely agree. Good analysis.