Monday, April 18, 2011

How to Spot a Market Top

Mark Hulbert has written an excellent, concise article on four factors to consider in determining a topping market cycle. These are:

* Valuation
* Sentiment
* Market Breadth
* Interest Rates

Assessing these four factors, the conditions for a top have yet to be met. Here is a link to the article.


  1. Haven't read the article, but was just coming to the same conclusion. I expect more upside. Large cap tech - AAPL, etc. may be the best sector going forward. QQQ may be a good proxy. Nice Inverse HLs on major indices. I took off my Russell short today, probably too early. Still short Silver, probably foolhardily. We'll see.

  2. Win, if, with a trendline, you connect the 2006 and 2008 peaks of GLD on weekly bars, you will see that prices are very close to running up against this trendline.