Phantasmix Stock Market Blog

OMG, BRK.B is going to split, 50-to-1 and join S&P! That’ll be $66/share at today’s price.

Warren Buffett is likely about to orchestrate one of the biggest changes in years to the financial structure of his company.

Berkshire Hathaway Inc. is widely expected to approve a 50-to-1 share split of its Class B shares on Wednesday, a move tied to its planned purchase of the railroad giant Burlington Northern Santa Fe Corp.

With the split, trading volume will likely increase, and that could attract a new group of bigger and faster-trading investors. The B shares closed Friday at $3,247, a lofty price that limited the kind of investors who bought the stock to mostly those with …

Source: WSJ

Corrections on SPX have been getting more and more shallow.

(SPY: 132.27 0.00%) touched 13ema today, and closed above it. Wonder if this is all the reaction we’ll get this time as well. Stochastics are still very overbought, and I’m still betting on a larger drop, holding March SPY puts.

Click to enlarge

Here’s the chart I’m trading. Sure, the 13ema and 34ema supports held, but notice how overbought S&P 500 is despite several corrections in the last couple of weeks. Nothing is helping this overbought condition so far. It needs to drop further to alleviate that.

TRIN was above 20 this morning, crazy bearish, it seems they were selling everything across the board. And lots of selling on strength over the last few days, SPY, GLD etc.

Note to self: best to short Russell, much more volatile on the downside.

Click to enlarge