In Monday’s column, I got some of Dan Zanger’s views on the market and he gave me some examples of stocks that had blow-off tops. This was one of the reasons he became bearish, looking for a 10% correction. I could not run the charts in Barron’s Online so here they are.
The idea was that they were already top performers so people expected good news. Then they bought in a frenzy on good earnings, which were already baked into the price, creating a buying climax.
