Given the news that has just hit the tape that Mr. Buffett has now become a significant shareholder in GE, I thought it fitting to have another look at the chart. The chart of GE (above) contains my comments I made back in June of this year.

I realise Mr. Buffett and his track record have been deified by the financial media. With that being said I look to the chart for answers and the GE chart does not look good. I see nothing that has changed in the pattern since I last posted on it. We see a fairly orderly continued succession of lower highs and lower lows. I would surmise the lows of mid Sept to be taken out in due time.

I will say without equivocation that the $18-18.50 area had better hold for Mr. Buffett or the fireworks could really get started. I also realise many out there, always looking for someone to think for them, will be jumping headfirst into GE following Mr. Buffett's lead. As for me, I am neither long nor short of GE but am inclined to hold out for $8 level. Crazy huh !

I also heard over the last few days that Mr. Buffett would not have made his investment in Goldman Sachs if he thought the government wouldn't pass the bail out bill. I am shocked that he is operating in this fashion. I would assume the same logic would probably apply to this foray into GE. This seems to me to be a very strange predication for plunking down some major bucks into the equity markets. But hey, who am I to criticize, the oracle of Omaha.