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| John Burns,
Well said.
Jumping in the markets when they are high or extended is about the best way to lose big.
As you say, most people do the easy thing and buy high--with the crowd--when the harder thing to do (for most) is to buy when price is low and news negative.
I recall a successful speculator saying a drop in price is like compressing a coiled spring and serves to give energy to a move up.
My version of this is it serves to give the better trader/investor a motive to buy and that motive is a lower price.
The better traders know that a high, extended market is prone to drop and sometimes significantly.
See foreign markets "mixed" this morning. Hong Kong up about 10% others down about half that amount.
Surely some day the temporary government "fixes" will fail. For now I'll bet they get it fixed.
I could be wrong.
Don
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A Dow "Victory"
