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All, I often refer to the free Yahoo message boards as a contrary indicator. The masses that post there seem to consistently do worse than the market average. Whenever a stock is peaking, they have lots of posts like "I'm long at $16, let's see what this baby can do". These people seem to think the stock market is some kind of a team game, and they want to join the winning team. Of course, by following the crowd, they lose. Looking at the Yahoo board today there are lots of people who bought SKYM just because it was up over 100%. They expect it to continue going up, not because of fundamentals, but because they believe other traders will buy at a higher price next week. But, using the dumb Yahoos as a contrary indicator, I'm sure next week will be down, not up. |
