Earlier this year, Berkshire Hathaway's (BRK-B) stock was soaring... On May 2, the legendary Warren Buffett's company closed at an all-time high of $539.80 per share. But the next trading day on May 5, Berkshire sank by 5%.

A Surprise Announcement Lost This Market Icon 15% By Ethan Goldman, junior analyst, Chaikin Analytics Earlier this year, Berkshire Hathaway's (BRK-B) stock was soaring... On May 2, the legendary Warren Buffett's company closed at an all-time high of $539.80 per share. But the next trading day on May 5, Berkshire sank by 5%. This marked an unusual plunge for the company. Berkshire had only fallen by 5% or greater in a single day one other time in the past five years. That happened back in the wake of the "Liberation Day" tariff announcements on April 2.  However, you'll remember the general market chaos back then. The S&P 500 Index also plunged after Liberation Day. Back in early May, Berkshire reported first-quarter earnings. And the company missed its earnings estimate of $4.72 per share by about 5%. That was smaller than the previous two earnings misses Berkshire sustained... Last year's third quarter saw Berkshire miss its earnings estimate by about 11%. And for its fourth-quarter earnings in 2022, Berkshire missed earnings estimates by about 26%. Those two misses didn't touch Berkshire's stock in a meaningful way... But May's smaller miss shaved 5% off the stock price the next trading day. Regular Chaikin PowerFeed readers know that there's more to the story than an earnings miss. So today, let's check back in with Berkshire's stock. And we'll see how it stands through the lens of the Power Gauge... Recommended Links: What the Trump Family's $2.6 Billion Move Means for You Donald Trump's family quietly moved $2.6 billion... and a blindsiding move by the U.S. Treasury could soon reveal why. One Hall of Fame analyst says this radical $2 trillion plan could soon reset the way America operates... and unleash enormous potential gains (10X or more) for those who act now. Click here for the details before September 9. Is Nvidia a Sinking Ship? Billionaires like Ken Griffin and Steve Cohen are quietly dumping Nvidia stock. Is this the beginning of the end of the AI bull run? This 50-year Wall Street veteran weighs in on the threat of an AI bubble – and exactly what it means for your money in the days ahead. Get the full story here. Buffett's Announcement Sparked Investor Fear Berkshire's earnings release in May also coincided with another big announcement – that Buffett would be stepping down as Berkshire CEO at the end of this year. As Marc Chaikin told PowerFeed readers back in June, this announcement came as a shock to the world. And investors feared that Berkshire wouldn't be the same without the "Oracle of Omaha." And the stock damage didn't stop at 5%... Berkshire kept tumbling over the following months. On August 4, it closed at a low of $459.11 per share. That marked a 15% fall from its May 2 peak. The Power Gauge also picked up on Berkshire's weakness... On May 5, Berkshire's rating in our system dropped "bullish" into "neutral" territory. And on July 23, Berkshire's rating fell to "bearish." This was the first time the company received a "bearish" or worse rating since October 2020. Over the past few months, Berkshire has still been stuck in either "neutral" or "bearish" territory. Meanwhile, by May 14, Berkshire's relative strength versus the S&P 500 Index turned negative. And this metric has stayed negative since then, too.   How the Power Gauge Will Signal Berkshire's Return Berkshire's stock has struggled since Buffett's announcement. But the next earnings release saw investor sentiment change... Early last month, Berkshire released its second-quarter report. And the company beat earnings estimates by nearly 3%. Berkshire's stock fell during the next trading day on August 4. But since then, it has been ticking higher. Yesterday, the stock closed at $506.91 per share. The chart below shows Berkshire's movement throughout this year... Again, the stock has moved higher recently. But to be clear, Berkshire is still in "neutral" territory in our system right now. And its relative strength is still sharply negative. Overall, the Power Gauge continues to flash caution for the stock. Also remember Buffett doesn't plan on stepping down from his role until the end of the year. And even then, he plans to stay with the company in some capacity afterward. Berkshire's real test will be after Buffett retires. His designated successor, Greg Abel, has been with Berkshire for more than two decades. Abel currently serves as Berkshire's vice chairman of noninsurance operations. However, scrutiny over Berkshire's performance will be high after Buffett officially steps down as CEO. After all, Buffett took control of the company back in 1965. His name is synonymous with Berkshire. For now, I wouldn't be running to invest in Berkshire just yet... I would want to see a stronger rating in the Power Gauge first. So I'll follow our system's lead and look for better opportunities for now. Good investing, Ethan Goldman   Editor's note: With its rating system – ranging from "very bearish" to "very bullish" – the Power Gauge helps find the best opportunities in the market. And it helps flag the worst stocks that look poised for downside. So if you don't already have access to our one-of-a-kind system, you can get it through a special offer today... Right now, you can gain an entire year of access to the Power Gauge by signing up for Marc's Power Gauge Report newsletter. And if you aren't satisfied within 30 days, you're protected by our 100% cash-back guarantee. In other words, it's risk-free to try it out. Learn how to get started with Power Gauge Report and the Power Gauge system as part of this special offer here. Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +0.84% 11 14 5 S&P 500 +0.84% 146 241 111 Nasdaq +0.91% 26 55 19 Small Caps +1.25% 724 1004 302 Bonds +0.76% Consumer Discretionary +1.83% 21 23 7 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Communication +2.21% Health Care +0.73% Consumer Staples +0.47% Consumer Discretionary +0.43% Financial +0.39% Real Estate -0.76% Materials -0.9% Energy -0.91% Utilities -1.06% Industrials -1.26% Information Technology -1.46% *  *  *  * Industry Focus Transportation Services 9 24 11 Over the past 6 months, the Transportation subsector (XTN) has underperformed the S&P 500 by -5.40%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #16 of 21 subsectors. Indicative Stocks UPS United Parcel Servic FDX FedEx Corporation FIP FTAI Infrastructure *  *  *  * Top Movers Gainers TROW +5.84% WSM +5.61% WDC +5.22% BLDR +5.09% MU +4.62% Losers EL -4.86% CRM -4.85% NI -4.71% CNC -4.69% IT -4.38% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close No earnings reporting today. Earnings Surprises GWRE Guidewire Software, Inc. Q4 $0.84 Beat by $0.21 CIEN Ciena Corporation Q3 $0.67 Beat by $0.14 CPRT Copart, Inc. Q4 $0.41 Beat by $0.05 LULU lululemon athletica inc. Q2 $3.10 Beat by $0.24 DOCU DocuSign, Inc. Q2 $0.92 Beat by $0.07 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at STEVENMAGALLANES520.NIMS@BLOGGER.COM. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. 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