NAVY SEALS AND MARKET TOPS
Important market turning points rarely give participants time to think. They often happen in a violent fashion that forces investors into hasty decisions. Often times those forced decisions cause paralysis and nothing is done at all. The standard reaction is to wait for a "better opportunity". The better opportunity rarely comes and another forced decision - often fear based - is made at a later point.
I've seen a fair share of calls being made inferring that we're close to a peak in the markets. If this is the case, the market is giving participants a lot of time to think, plan and coordinate their next move. You can liken it to the recent raid on Osama Bin Laden. It was done quickly, with extreme force and pinpoint precision. Market turning points are similar. You don't have time to plan your getaway.
What is happening today is the equivalent of a Navy Seal knocking on the door and asking if he needs to take off his shoes before entering the premises. It's too slow. It's fairly calm. It doesn't have the makings of a top.
I think that the bulls will escape this one relatively unscathed. No top in sight....yet.
May 3, 2011
Good article and it drives the point home that if we can all see it coming, it’s probably not happening.
I think we are due a pullback, but to call a top here is a little premature.
Love your commentary
tiny
May 3, 2011
Much appreciated Tiny!
May 3, 2011
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