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Sell Euphoria, Buy Hysteria
Posted on 03/21/2007 09:59 AM | Link | Post Comment
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Spotting a market top or bottom is not always easy. The reason is because investors get caught up in the euphoria or hype of the moment, or get depressed during periods of hysteria.
For example, a few years ago (and I hate to admit this), my wife and I would watch the cooking show, "Emeril Live". As the show became more and more popular, I noticed "Emeril Cookware" in the department stores. After seeing the cookware in the stores, I told my wife, "If Emeril was a stock; I would sell it right now".
Another example of euphoria is Jim Cramer's "Mad Money". When Cramer (and CNBC) began to take "Mad Money" on the road to college campuses nationwide, I knew the show, and maybe the market, was approaching an important top.
In short, if Cramer's Mad Money was a stock, I would have sold it when they began taking the show on the road to college campuses.
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Examples
Morpheus Trading - Mon Jul 21, 2008 08:33AM
NOTE: Please click on the charts below to enlarge them if [read more]
NOTE: Please click on the charts below to enlarge them if [read more]
Morpheus Trading - Mon Jul 21, 2008 08:31AM
NOTE: Please click on the charts below to enlarge them i [read more]
NOTE: Please click on the charts below to enlarge them i [read more]
Millionaire Now! by Larry Nusbaum - Tue Jul 22, 2008 09:23AM
Hedge funds have made billions this year shorting the banks, [read more]
Hedge funds have made billions this year shorting the banks, [read more]











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