Warren Buffett has his own Investment Strategy and Market Timing
Newsletter.
How to Use the Warren Buffett Holdings
Newsletter
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.
http://www.warrenbuffettnewsletter.com/overview.html
