Berkshire shares are breaking out. Katie Stockton says it's a timely buying opportunity. Two sentences that pair beautifully if you've never looked at a price chart in your life.
Stockton gets paid to tell people what's already happening. Shares go up. She says buy. Shares go down. She says sell. It's technical analysis for people who need permission to have eyes.
The headline calls this timely. Timely means you're late. The breakout happened. You missed it. Now you get to buy at the high because a technical analyst said the lines look pretty.
Berkshire is a high quality name. This is code for "we have no idea what else to buy but we can't admit that publicly." Volatile times demand safety. Safety demands Berkshire. Berkshire demands you pay up after the move already happened. It's a perfect system if you enjoy buying expensive things.
Retail traders will read this and think they've discovered alpha. They'll open their brokerage app. They'll buy fractional shares at the breakout level. Then they'll check the price every eleven minutes until they panic sell at a loss three weeks later. The chart will still look bullish. Stockton will still say it's a timely opportunity. The lines don't care about your checking account.
The best part is calling this a breakout. Berkshire moves like continental drift. Calling it a breakout is like calling your grandfather's walk to the mailbox a sprint. But the chart says breakout so retail says buy. Technical analysis works until you try to use it.
Somewhere Warren Buffett is eating a Dairy Queen Blizzard and not reading Katie Stockton's technical report.
Photo by Infrarate.com on Unsplash
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