Friday, February 16, 2007

"Why, it's a bull market."

So, I'm rereading Reminisces of A Stock Market Operator. One of my favorite stories in it is about the old man who, when someone asks him why he won't take a contrary tip, only replies, "Why, it's a bull market." Livermore says this helped him understand one of the problems that he had in his early trading: cashing out too soon.

On that note, IBD today dropped a distribution day off the Nasdaq (and one earlier this week) and the S&P, giving them 1 & 2 days, respectively. There's no guarantees, but you can only see what the market has done, not what it's going to do.

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