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U.S. Stocks Going Parabolic?

May 7th, 2007 · No Comments

Could you repeat the question? How about if it’s likened to the Nikkei’s boom (and subsequent bust) in the 80’s? MarketWatch covers newsletter editor Dennis Gartman’s (of the Gartman Letter) warning of U.S. stocks seemingly going parabolic, as the Dow and now the S&P 500 climb higher and higher. He says, “We must remember that when markets go parabolic (and they do indeed go parabolic from time to time) it is important to remember one of our oldest trading aphorisms: that the final 10% of the time frame of a bull market can, and often will, encompass 50-75% of the price movement. We may be in that environment now. Things seem to want to go “parabolic.” What may seem like insanity may be nothing more than history repeating itself once again.” That said, Gartman concludes: “Speculators are advised not to try to catch falling pianos, and not to try to stop rockets in their initial push higher.”

Just some food for thought — just what you need on Monday.

More on this topic (What's this?)
Quick Technical Analysis: S&P 500
Dow Jones 10 Year Chart - December 19, 2008
Read more on Nikkei 225, S&P 500, Dow Jones Industrial Average at Wikinvest

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