An Open Letter to Warren Buffett – Wait on Japan

Dear Warren, I hope you are well. I am glad now that the whole Becky Quick ‘thing’ is settled, ‘Uncle’ Warren can now visit his ‘Nephew’ in the approved schedule and that he will be going to the finest schools. I am writing you Warren because I read recently that you are looking to pick through the ruble of the Japanese mess looking for bargains. Well as one mid-westerner to another I think maybe you should stay out of the bathtub for a while on this one and take a cold shower (Becky should have given you that advice too, now that I think of it). I know you have been doing this sort of thing for a long time but that last idea in the soaker has not played out so well. You see, Warren old buddy, the Japanese market actually looks like it may head lower. Let me explain. I am a Technical Trader and the chart of the Nikkei Average does not look that good to me. I have included it here. I use these thingys called Fibonacci retracements to get a view on where the

rhythm of the market might take it. This Golden Ratio is found all through nature and hard wired into our brains so it works remarkably well. Well, Captain Boooofay (can I call you that? I feel I know you already), it seems that after rising only to the 38.2% retracement of the move lower from 2007 to 2009, it has now retraced over 61.8% of that bounce higher. That means it is now likely to fall all the way back to that 2009 low just under 7000. I also use these indicators to help out with forecasting and they are all whack! I mean pointing lower. The Relative Strength Index (RSI) has continued to make lower highs as it runs bearish and suggests that the Nikkei is going lower. The other one I use the Moving Average Convergence Divergence (MACD) indicator confirms this with a negative read. I know it is a bit confusing and seems like mumbo-jumbo. But trust me if it falls under 8300 you do not want to touch it with Gregory Abel’s, well, you know what. Wait for at least 8000 or 7500 if you are feeling some pressure before 7000. In fact you’d be better off shorting it. You can thank me later. I could have probably helped you with Bank of America, $BAC, as well,

sorry I did not reach out sooner. You should probably try my premium service, it only costs $90/month. I know you are good for it. We are up 35% after 2 months (I will give you the details) and you know what homey, for you a free 1 month trial. Here is a quick tip, you can also watch the ETF Japan iShares, $EWJ, during US Market hours. I put the chart above so you can see that is is similar. Well I have to get ready for the day now. I hope this helps and hit me up if I can do anything else for you.

Sincerely,

Greg Harmon

P.S. Any chance you could adopt me?

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