The more they climb, the more they buy

The higher the DJIA climbs, the stronger investors commit to the rally.

This herding pattern repeats itself in every bull (and bear) market. When stocks reverse, the majority gets the inevitable surprise.

You can avoid this mistake.

Prepare for critical market junctures now with our comprehensive Financial Forecast Service.

Recent Posts

Advisors Fall in Love

This Sentiment Measure Nearly Matches October 2007

The DJIA has been on a winning streak with one all-time closing high after another. "Traders are convinced that market volatility will remain nonexistent." Our subscribers know better.

Jim Martens

When Is The Right Time To Exit a "Good Trade"?

How do you know the right time to exit when price action goes your way? While no forecasting method guarantees that you buy at the absolute low and sell at the absolute high, Elliott wave analysis -- and, specifically, Fibonacci relationships between waves -- can help you identify high-probability price targets.

Why a "Nation of Immigrants" Can't Agree On Immigration

Senior Editor Robert Folsom explains why looking at social mood can offer clarity to one of America's oldest ongoing political controversies.

Commodity Investors: The Line Between Opportunity & Regret

Since last August, cocoa prices have been in a “meltdown” (CNBC). But imagine having a clear “line” in the sand which, if crossed, would signal such a sell-off -- before it occurred. Well, you don’t have to imagine.

What Higher Highs & Higher Lows Say About the NASDAQ

As of February 15, NASDAQ 100 prices had closed higher in 11 of the past 12 sessions -- the longest closing-high streak in the index since a 14-day streak back in June and July of 2013. What's more, the price rise since November 4, 2016 shows a series of higher highs, and higher lows. That's a strong indicator for the direction of the trend...

Roses Are Red... and So's Been EURUSD's Trend

Roses are red. Violets are blue. The fundamental stage was set for the euro to rise... but instead it went boo hoo. The reason why might surprise you.