Buffett may pull this market down....

Warren Buffett losing 50 billion in this slump has eroded his confidence in this TAPE...

It just proves that even the-best investor in the world can have a bad month or even a year.....

BUT we have to be ready for his remarks and its after affects .....

Buffett does not see bargain...this may trigger selling in an overbought market......

After looking @ charts of DOW, S&P & Nasdaq......this is very obvious :

DOW ready to plunge below 50 DMA on open...its only 1.1% away...

S&P 500 may dip 2.55%

Nasdaq may dip 5.26%......

S&P 500 & Nasdaq have little room before it test or plunge below 50 DMA.....

OK what to focus on to avoid full impact on Buffett selling...

First thing first...reduce exposure....means sell @ open...

Write covered call....

Focus on sectors which are ripe to reverse......

Oil looks ready to reverse.....

Nat Gas looking better...

Casino stocks may improve....

Biotechs may have reached severe overbought conditions.....be careful there.....

Warren Buffett do carry lot of weight...so do not underestimate his feelings about this TAPE....

Good luck with your own thesis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed