Market bottom seems near

smallfil said:
When hacks on cable TV say, we are at capitulation, watch out. These guys have no clue what capitulation looks like. There must be extreme, serious pain for investors and traders to capitulate. The stockmarket has not even dropped enough and there are still buyers stepping up and buying on the dips. Smart money does not buy when a stock is still falling. It makes no sense. Only clueless retail traders and investors do it. They think a stock that used to be $150 and now $50 is a huge bargain. Not when the costs of production of companies are going up thru massive inflation. Profit margins are squeezed and layoffs coming. That is not even counting the supply chain problems of getting their materials to their factories. Stockcharts indicate a lot of these stocks are still headed lower. When you buy these stocks, you are trading against the major trend.
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You are good.
 
I am humbly trying to figure out the reasons why Buffet is buying, is maybe averaging down? My point is that in Berkshire they have kinda of tools to monitor changes in market directions that probably retail traders do not have. Hope to not appear provocative, just trying to understand as a newbe, their recent move leave me some perplexity. Not speaking about OXY that has some sector power and great head start of phase 2 from graphs
 
Ivano said:
I am humbly trying to figure out the reasons why Buffet is buying, is maybe averaging down? My point is that in Berkshire they have tools to monitor changes in market directions that probably retail traders do not have. Hope to not appear provocative, just trying to understand as a newbe.
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Buffett is a value investor, the current market in some instances push stocks which were already falling off a peak prior to this bear mkt, right down into value territory, only makes sense to grab them before someone else does, get a lot of M&A's about now.
 
themickey said:
Buffett is a value investor, the current market in some instances push stocks which were already falling off a peak prior to this bear mkt, right down into value territory, only makes sense to grab them before someone else does, get a lot of M&A's about now.
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gotcha is about having control of a company, and intrinsic price value that may be different by the idea of mkt direction from a trader point of view!
 
Said that I bet/feel/dare to say they watches( thoroughly) at least monthly and weekly charts before to buy
 
Dudes, am I right here? The original MAGIC model also suggests a buy signal.
tqqq-20020530.png
 
Ivano said:
I am humbly trying to figure out the reasons why Buffet is buying, is maybe averaging down? My point is that in Berkshire they have kinda of tools to monitor changes in market directions that probably retail traders do not have. Hope to not appear provocative, just trying to understand as a newbe, their recent move leave me some perplexity. Not speaking about OXY that has some sector power and great head start of phase 2 from graphs
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Warren Buffet is a long term investor. Think 50 years minimum. Also, he changed his approach from buying shares in companies to buying entire companies and running them thru Berkshire. That is just common sense. When you own entire companies, you have a guaranteed return on your monies, whatever it is. Let us just say 10% per year. Even Warren Buffet has the common sense to figure out that oil is a commodity that will be needed by the entire world for decades on down. Does anyone still believe that oil will be replaced by alternative energy like solar cells, windmills, etc.? If that is the case, oil would have been obsolete a long time ago. Instead, you have huge subsidies for solar cell companies, windmill companies, etc. Why? For one thing, the cost of producing the same unit of energy from oil is still way, way cheaper.
 
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