Last month I was getting antsy about shorting this market. As a result I nibbled a little at the QID and was stopped out rather quickly. What I quickly realized was that I was forgetting one important fact about market tops, namely, the leaders must tank before the rest of the market follows suit. I pointed out US Global Investors (GROW) as one of the leaders to watch.
Check out the first chart I have on the left. GROW has tanked and tanked hard! As I said yesterday, I tried to short it yesterday but couldn't get my hands on any shares to borrow. It looked like a fortuitous event when GROW shot up 5% this morning. But that quickly changed when a midday reversal took place.
Check out some more of the leaders.
I have a particular fascination with climax tops. ROS is a classic example.
Here are some more leaders that have come off of their highs with volume.