In addition to the FOMC meeting and interest-rate decision (and Powell's presser), this is another big week for first-quarter EPS, with results from PLTR, CMI, AMD, ANET, MAR, DUK, NVO, UBER, DIS, ARM, APP, MELI, HUBS, DASH, SHOP, BUD, COP, MCK, and COIN (to name but a few). With almost 75% of S&P 500 companies having reported, 76% have beaten the analyst consensus on EPS and 62% have beaten on revenue. After a torrid nine-day surge, the major indices and many stocks are overbought for the short term, so it wouldn't be surprising to see some near-term consolidation. The five-day relative strength index (RSI) hit 84% on Friday and the five-day exponential moving average (EMA) was 1.7% above the 13-day EMA, the largest spread since November 2022 -- when the S&P 500 (SPX) was emerging from a bear market. We also saw these over-bought levels during the 2022 bear market and months before the actual bottom in October. Another potential reason for a possible market pause is that the major indices are in "no man's land." The SPX is sitting in between its 50-day and 200-day average and, unfortunately, so is the S&P 100, Nasdaq, and Nasdaq 100. As well, the majors are sitting at or slightly below the key 61.8% retracement of their corrections. Generally, a strong break above this retrace level sends the all-clear for indices to march back to prior highs and possibly to new highs. While the majors all have completed bullish ABC reversals, the targets based on the size of these patterns have been fulfilled. It looks like they are all working on much larger inverse head-and-shoulders patterns -- but more upside is needed. (Mark Arbeter, CMT)

Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the companies that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.

Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the companies that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.

Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco’s frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates over 600 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 280 warehouses, primarily in markets such as Canada, Mexico, Japan, and the UK.