Buffett’s purchase of Heinz at a 20% premium over the market reminds us that the smart money is not looking to hit home runs these days or even for extra bases — just good, steady returns from businesses that have been around for a while and which will probably still be around even as the economy sinks into Depression.  With this purchase he will own the bluest of blue chip companies involved in the sale and distribution of food and many other household staples.

From a technical standpoint the stock had stalled almost precisely at the 60.79 target of the pattern shown.  Now it’s in buyout heaven, trading at a height that could not have been predicted using Hidden Pivot calculations but which we surmise will prove to have been a bargain nonetheless.