It is interesting to note that Warren Buffett's Berkshire Hathaway is keeping US$55 billions cash, a record high for Berkshire. Is he slowly building up his protection against any possible downside ?
Click ' Buffett Builds US$55b Green Pile' for the article published on 21st August, 2014.
Frankly speaking I am getting more and more nervous as Dow moves higher and higher with more record highs.
If Dow is well behaved, it will form its next minor wave ix. After completing its mini wave 3, it will then form its mini wave 4 and 5 and then my next question will come, "Is that the end of wave (xiii) ?"
As wave (xiii) can be the end of Dow's major wave (5) unless it continues to form wave (xiv), (xv) and (xvi). The worst is when this major wave (5) is also the end of its mega wave 1.
Since the March 2009's low of 6547, Dow gained 70% for its major wave (1), 32% for its major wave (3) and until now its has gained 67% for its current wave (5) that has yet to complete. The only thing that gives me some comfort is the theory that 'wave 3 cannot be the shortest wave'. But, don't forget the Murphy's Law.
For the current major wave (5), wave (xiii) has gained 10.6% so far, the magnitude is about there. Be careful.
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