🔝 Berkshire Hathaway. Grandpa Warren Breaks The TopLegendary investor Warren Buffett was on a trip to Tokyo, the capital of Japan, ten months earlier in mid-April 2023, and the titans of the country's giant energy and commodity conglomerates were there to make their presentations.
As usual, over glasses of Coca-Cola NYSE:KO - one of Buffett's most famous investments, they walked into Warren Buffett's suite at the luxury Four Seasons hotel and individually told the 92-year-old American investor the same thing: Japanese trading houses are cheap and should accelerate their move beyond commodities.
The support of the Oracle of Omaha is an important vote of confidence in the big five Japanese trading houses - Mitsubishi Corporations TSE:8058 , Mitsui TSE:8031 , Sumitomo TSE:8053 , Itochu TSE:8001 and Marubeni TSE:8002 .
It's also a broad endorsement of Japan, that is considered to have outlived its heyday 30-35 years ago, as well as considered less relevant than Asian counterparts such as China and India.
But there's one big question: Is Buffett betting on phasing out fossil fuels, the trading house products themselves, or a combination of the two? Or something else, like impact of the weak yen!?
Buffett's Berkshire Hathaway NYSE:BRK.B reported in August 2020 that it had acquired about 5% of the shares of five trading houses, that sent their stocks up and raised their total investment value above $6 billion. When the Covid-19 pandemic dampened demand for goods, it pushed down the value of company stocks, four of which traded below book value.
“They were selling, I thought, at a ridiculous price,” - 3 years later Buffett said to CNBC, in March 2023.
Three years after the Covid-19 pandemic (that is now hardly remembered) Warren Buffett's bets on Japan have nearly tripled to over $17 billion.
But even this Growth does not stop Buffett. Staying in Tokyo last spring, Buffett confirmed intentions to buy more shares, and participate in more big deals.
In addition, Berkshire recently unveiled plans to issue its own yen-denominated bonds, which can help hedge against the depreciation of the yen against the US dollar as well as depreciation of Japanese stocks in dollar terms.
In nowadays Japan Stock Index TSE:TOPIX ended 2023 on a positive note, adding more than 25 percent at the end of the year, that is, the maximum growth over the last 10 calendar years.
Early in 2024 TSE:TOPIX continues its growth path, as technology companies stocks are rallying.
In 2024 TSE:TOPIX hit the 2,500 yen mark - point that not been seen for more than 30 years - since the first half of 1990, while another one Japan stock index Nikkei225 INDEX:NKY hit its 36'000 Milestone - the level that was not seen also since early 1990s.
The main technical graph says Berkshire Hathaway Class B NYSE:BRK.B stocks are on the runway to break its key resistance - 6-month and all time highs, to further upside price action delver.
Inflationhedge
S&P 500 Daily Chart Analysis For Week of Jan 19, 2024Technical Analysis and Outlook:
Spooz's robust movement from our Mean Sup 4745 toward our designated target, Inner Index Rally 4882, is on its way, leaving no fingerprints at the crime scene at the completed Outer Index Rally 4807. The advancement toward a higher target Outer Index Rally 5035 is now in its making. However, once we reach the designated target of Inner Index Rally 4882, we may face a squeeze that could cause prices to drop down to the Mean Support level of 4798 and possibly even the Mean Support level of 4725.
S&P 500 Daily Chart Analysis For Week of Jan 12, 2024Technical Analysis and Outlook:
Spooz's extended movement toward our designated target, Mean Res 4783 and Key Res 4800, is noteworthy. However, the completed Outer Index rally poses a significant barrier to advancement towards higher targets: Inner Index Rally 4882 and the next Outer Index Rally 5035. The current level of tight trading range supports this theory. Despite this, current market conditions suggest we may experience a squeeze that could drive the prices down to the Mean Support level at 4745 and possibly even the Inner Index Dip at 4595.
S&P 500 Daily Chart Analysis For Week of Jan 5, 2024Technical Analysis and Outlook:
The Spooz extended down movement from our designated target Key Res 4800 and Outer Index Rally 4807 and now rests comfortably at our Mean Support level of 4700. The current market conditions suggest we experience a squeeze that could take us down to the Mean Support level at 4644 and possibly even the Inner Index Dip at 4595. However, the current level of support may provide a rebound to the newly created Mean Resistance level at 4740 before continuing its downward movement.
S&P 500 Daily Chart Analysis For Week of Dec 29, 2023Technical Analysis and Outlook:
The Spooz has slowly but surely approached our designated target Key Res 4800 and Outer Index Rally 4807 throughout this short week's trading session. Some market squeeze from the current position might take us to Mean Sup 4700. This level of support is considered a strong support level for the index and can allow traders and investors to make a suitable entry decision.
Fed's Hope in 2024 - Their Projection & PlanDuring the December FOMC conference, the fed said the appropriate level for interest rate or the fed funds rate will be 4.6% at the end of 2024 from current 5.5%, 3.6% at the end of 2025, and 2.9% at the end of 2026.
Many reporters take that as Fed’s hint to cut rate in 2024, but the Fed added saying these projections are not the committee decision or plan.
So what is the difference between a projection and a plan? And how will the market performance in 2024?
Dow Jones Futures & Options
E-mini Dow Jones
Ticker: YM
1.00 index point = $5.00
Micro E-mini Dow Jones
Ticker: MYM
1.0 index points = $0.50
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
S&P 500 Daily Chart Analysis For Week of Dec 22, 2023Technical Analysis and Outlook:
The S&P 500 index exhibited continued strength by rising above our Completed Inner Index Rally 4713 with the violent retreat on Wednesday to this strategic price level. The main target is our central Key Res 4800 and Outer Index Rally 4807, completed on June 4th, 2022. However, some concerns about a market squeeze from the newly created Mean Res 4769 might cause a pullback to Mean Sup 4700. This level of support is considered a strong support level for the index and can allow traders and investors to make a suitable entry decision.
S&P 500 Daily Chart Analysis For Week of Dec 15, 2023Technical Analysis and Outlook:
During this week's trading session, the S&P 500 index exhibited remarkable strength, with consistent price momentum throughout. The index managed to surpass our Key Resistance level of 4639 and Inner Index Rally level of 4647, finally resting at the completion of Inner Index Rally level of 4713.
Looking ahead, the following two targets for an upward trend are the completed Outer Index Rally level of 4807 and the Key Resistance of 4800. Both price levels were created on June 4th, 2022.
However, there are some concerns about a market squeeze from the current completed Inner Index Rally 4713 that might cause a transient pullback. In such a scenario, the index could move downward and reset itself to the Mean Support level of 4644. This level is considered a strong support level for the index and can provide an opportunity for traders and investors to make a suitable entry decision.
EUR/USD Daily Chart Analysis For Week of Dec 15, 2023Technical Analysis and Outlook:
The Eurodollar currency pair has shown a strong rebound in the recent trading session, climbing to reach our previously identified Inner Currency Rally level of 1.099. However, this was followed by a sharp reversal, with the price dropping rapidly. The current price action indicates that the Eurodollar is likely to continue on a downward trend, with the designated target levels being Mean Sup 1.075 and Inner Currency Dip of 1.068.
Overall, it's crucial to stay vigilant and informed about the ever-changing dynamics of the Eurodollar market to make the most of the opportunities it presents.
Rate Cut 1930 - Pattern Recognition: 30s vs Today In 1930, when the Fed cut interest rates, the market crashed further. In today's tutorial, we will be comparing the 30s and today’s market to identify some of their similarities.
Where exactly are interest rates’ direction pointing us?
As we may have read, many analysts are forecasting that there will be a few rate cuts in 2024. Is this the best option?
My work in this channel, as always, is to study behavioral science in finance, discover correlations between different markets, and uncover potential opportunities.
Micro Treasury Yields & Its Minimum Fluctuation
Micro 2-Year Yield Futures
Ticker: 2YY
0.001 Index points (1/10th basis point per annum) = $1.00
Micro 5-Year Yield Futures
Ticker: 5YY
0.001 Index points (1/10th basis point per annum) = $1.00
Micro 10-Year Yield Futures
Ticker: 10Y
0.001 Index points (1/10th basis point per annum) = $1.00
Micro 30-Year Yield Futures
Ticker: 30Y
0.01 Index points (1/10th basis point per annum) = $1.00
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
S&P 500 Daily Chart Analysis For Week of Dec 8, 2023Technical Analysis and Outlook:
Throughout the course of this week's trading session, the index remained relatively stable using our strong Mean Sup 4546 as a strategic price platform, notwithstanding moderate gains leading toward the Key Resistance of 4639 and Inner Index Rally of 4647. Moreover, the Inner Index Rally 4647 indicates a strong bullish trend for traders and investors to ponder. Once the market reaches the target price, the resulting squeeze could be substantial and chaotic. As a result, traders and investors should be cautious and attentive during this price action period.
Bitcoin(BTC/USD) Daily Chart Analysis For Week of Dec 8, 2023Technical Analysis and Outlook:
Bitcoin has completed our three consecutive Outer Coin Rallies 39200, 41200, and 43700 in this week's trading. On the downside, the intermediate down target is Mean Sup 43100. The subsequent squeeze will likely be Mean Sup 41500.
The upside price movement is expected to be aggressive and intense, as the market sentiment is tilted towards bullishness. The market participants will likely be actively buying, leading to a surge in demand for the asset pushing the price higher. However, it is essential to note that the market is volatile and subject to sudden changes, so investors should remain cautious and closely monitor the support and rally outcome price targets.
S&P 500 Daily Chart Analysis For Week of Dec 1, 2023Technical Analysis and Outlook:
The Spooz index in this week's trading session retested our completed Inner Index Rally 4590 of July 27, 2023, and is moving higher, targeting the Key Res 4630 and Inner Index Rally 4647, respectively.
Once the market successfully achieves this target price, the follow-up squeeze will likely be significant and turbulent. Traders and investors should, therefore, be prudent and vigilant during this price action phase.
GOLD - Short Squeeze Similar to 2008 ?Hi Traders, Investors and Speculators of the Charts 📈📉
Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year.
In today's analysis, let's discuss the recent surge in gold. Have we seen this before or is it dejavu? In light of the recent fears concerning the banking system, gold has been increasing rapidly. Bitcoin follows on it's heels as many investors diversify into crypto. (Please check out related ideas below, I did a comprehensive update on the SVB collapse). Now let's get call it what it is - a short squeeze.
A short squeeze is a situation that can occur in the trading of commodities, stocks or other financial assets where investors who have bet against a particular asset (by shorting) are forced to buy back the asset at a higher price than they initially sold it for. This can happen when there is a sudden surge in demand for the asset, causing its price to rise sharply, which then triggers a chain reaction of buying by short sellers who need to cover their positions. To understand how a short squeeze works, let's start with a brief overview of short selling.
Short selling is a trading strategy in which investors sell borrowed shares of an asset, hoping to buy them back at a lower price in the future. The idea is to profit from a decline in the asset's price, as the short seller can buy back the shares at a lower price than they sold them for, pocketing the difference as profit. However, short selling is inherently risky, as there is no limit to how much the asset's price can rise. If the price of the asset increases, short sellers may be forced to buy back the shares at a higher price than they sold them for, resulting in a loss.
Now, let's assume that a large number of investors have sold a particular asset short, betting that its price will fall. If the asset's price starts to rise instead, these short sellers may start to feel pressure to buy back the shares to cover their positions, as they do not want to incur further losses. As more and more short sellers start to buy back the asset, its price may continue to rise even further, which can create a feedback loop. This, in turn, can trigger more short sellers to buy back the asset, creating a self-reinforcing cycle of buying that can drive the price up even higher.
At some point, the short sellers may become desperate to cover their positions, as they fear the asset's price will continue to rise. This can lead to a sudden surge in demand for the asset, which can cause its price to skyrocket. This sudden increase in demand for the asset, driven by short sellers trying to cover their positions, is what is known as a short squeeze. The short sellers are "squeezed" out of their positions, as they are forced to buy back the asset at a higher price than they initially sold it for. A short squeeze can happen after a strong bullish surge because gold is a popular asset for short sellers to bet against. Short sellers often sell gold futures contracts or exchange-traded funds (ETFs) with the expectation that the price of gold will fall, allowing them to buy back the contracts or ETFs at a lower price and pocket the difference as profit. However, if the price of gold starts to rise unexpectedly, these short sellers may become nervous and begin to buy back their positions to limit their losses. As more and more short sellers buy back their positions, this creates additional buying pressure, which can push the price of gold even higher.
If the price of gold continues to rise, some short sellers may become desperate to cover their positions, as they fear that the price will continue to increase and their losses will mount. This can lead to a short squeeze, as short sellers compete with each other to buy back gold contracts or ETFs, driving the price even higher. Additionally, a short squeeze in the gold market can be exacerbated by the fact that gold is often seen as a safe-haven asset , particularly during times of economic uncertainty or geopolitical tension. During such periods, demand for gold can surge, leading to a sharp rise in its price. This can create a situation where short sellers are caught off guard and forced to cover their positions at a loss, which in turn can drive the price of gold even higher.
One notable example of a short squeeze in the gold market occurred in the early 1980s. In the late 1970s, gold prices had surged due to high inflation, political uncertainty, and a weak US dollar. However, by the early 1980s, inflation had begun to decline and the US dollar had strengthened, leading many investors to believe that gold prices would fall. As a result, a large number of investors began to sell gold short, betting that prices would decline. However, in January 1980, the Soviet Union invaded Afghanistan, leading to a spike in geopolitical tensions and a surge in gold prices. This caused some short sellers to begin buying back gold in order to limit their losses, which in turn led to further price increases. As the short sellers continued to buy back gold, other investors began to take notice and also started buying, leading to a widespread short squeeze that caused gold prices to soar to an all-time high of $850 per ounce in January 1980. This short squeeze ultimately led to significant losses for many investors who had bet against gold, while those who had held long positions in the metal enjoyed substantial profits.
During past short squeezes in the gold market, prices have risen significantly, sometimes reaching all-time highs. For example, as I mentioned earlier, in January 1980, gold prices reached an all-time high of $850 per ounce during a short squeeze. Another example occurred during the global financial crisis of 2008-2009, when investors flocked to gold as a safe-haven asset amid market turmoil. In March 2008, gold was trading around $900 per ounce, but by September 2011, it had reached an all-time high of $1,920 per ounce. Can it be possible to see something similar to this over the next few months ? In other words, be careful to short gold at resistance. This is exactly what would seems like a logical scenario after a period of upward trading, but we're trading at ATH's and in uncharted territory, so who can say where the next resistance zone is?
It's important to note that short squeezes are unpredictable events and can be influenced by various market conditions and factors. Additionally, historical price movements may not necessarily indicate future price movements. Therefore, it's always important to conduct thorough research and seek professional financial advice before making any investment decisions.
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S&P 500 Daily Chart Analysis For Week of Nov 24, 2023Technical Analysis and Outlook:
In this week's abbreviated trading session, the S&P 500 index has again shown a constant upward trend. Current price action exhibits a solid indication to hit our completed Inner Index Rally 4590 on July 27, 2023, and move higher to Inner Index Rally #1 4647 and #2 4713, respectively. However, it's important to note that the market may experience transient pullbacks at this level, causing severe drawdown.
Once the market successfully achieves these targets, the subsequent squeezes will likely be significant and turbulent. Traders and investors should, therefore, be cautious and watchful during this phase, as it could considerably impact their trading and investment approach.
EUR/USD Daily Chart Analysis For Week of Nov 24, 2023Technical Analysis and Outlook:
After a pullback, the Eurodollar aims for our designated target, Inner Currency Rally 1.099. This comes after the currency repeatedly hit strong Key Res 1.092 in this week's price action. This suggests that the Eurodollar may experience an imminent rally to Inner Currency Rally 1.099 in this upcoming session, potentially bringing it to a primary pivotal squeeze with an extension all the way to Mean Sup 1.087.
XAUUSD, NDX, XU100: Real Prices (Inflation Adjusted)A historical overview of inflation adjusted prices: XAUUSD, NDX, XU100USD
We are all blinded by "the price", and usually oblivious to the real price and real earnings.
As inflation silently erodes the market, it may be a cold shower to take a look in the long run.
The elephant in the room: the gap between the nominal and CPI adjusted price.
S&P 500 Daily Chart Analysis For Week of Nov 17, 2023Technical Analysis and Outlook:
The S&P 500 index has been showing a consistent upward trend for a while now, and it has reached our designated Mean Resistance level of 4515 in this week's price action. This price level indicates a strong indication of retesting our completed Inner Index Rally 4590 on July 27, 2023. However, it's important to note that the market may experience a temporary pullback at this level, causing it to fall back to Mean Support of 4487. This transient retracement is essential for gathering momentum for the next rally phase.
If the market successfully retests the completed Inner Index Rally, the subsequent pullback will likely be significant and turbulent. This means traders and investors should be cautious and watchful during this phase, as it could considerably impact their trading and investment approach.
S&P 500 Daily Chart Analysis For Week of Nov 10, 2023Technical Analysis and Outlook:
The Spooz index pivoted briefly from the completed Inner Index Rally 4375. This transition allowed traders with long positions to exit with prudence. The current momentum is solid and targets a Mean Resistance of 4515. Traders expect this momentum to ultimately lead to a retest of our completed Inner Index Rally 4590 on July 27, 2023. However, it's worth noting that the market can be quite reactive, and sudden fluctuations in either direction may occur. As such, traders should remain vigilant and have a sound strategy in place to deal with unexpected market movements.
S&P 500 Daily Chart Analysis For Week of Nov 3, 2023Technical Analysis and Outlook:
The stabilized selloff in the bond market in this week's price action sent the index raging upward all the way up to Mean Res 4378 and completing our Inner Index Rally 4375. On the downside, the index will likely go down toward the Mean Sup 4238, followed by a series of price targets marked on the chart. However, due to the reactionary nature of the market, sudden fluctuations in either direction are possible.
S&P 500 Daily Chart Analysis For Week of Oct 20, 2023Technical Analysis and Outlook:
The Spooz index held staunchly by our completed rebound projection and Mean Res 4378 by tumbling down to Mean Sup 4224, eyeing a retest Inner Index Dip 4212 with an intermediate rebound target to Mean Res 4255. The index could extend to the next Inner Index Dip 4150 for the next week's trading.
EUR/USD Daily Chart Analysis For Week of Oct 20, 2023Technical Analysis and Outlook:
This week's trading saw the Eurodollar drawn to the Mean Res of 1.062, its main attraction. The intermediate price action may cause a pullback to Mean Sup 1.053 before resuming rebounding to Inner Currency Rally 1.070 with the completion of the pullback to follow.