"Finally, comes the third phase when the market boils with activity as the 'public' flocks to the boardrooms. All the financial news is good, price advances are spectacular and frequently 'make the front page' of the daily papers, and new issues are brought out in increasing numbers. It is during this phase that one of your friends will call up and blithely remark, 'Say, I see the market is going up. What's a good buy?'--all oblivious to the fact that it has been going up for perhaps two years, has already gone up a long ways and is now reaching the stage where it might be more appropriate to ask, 'What's a good thing to sell?' In the last stage of this phase, with speculation rampant, volume continues to rise, but 'air pockets' appear with increasing frequency, the 'cats and dogs' (low-priced stocks of no investment value) are whirled up, but more and more of the top grade issues refuse to follow."
The Dow Theory
Technical Analysis of Stock Trends
Robert D. Edwards and John Magee
As it was in '73, so shall it be in '00. |
