Well it seems that when the mainstream media gets involved in the stock market news it usually signals that there is a market top.
As people drift into the CNBC lobby in the morning, they grab bundles of newspapers from the front desk. It's a routine.
Almost universally Wednesday morning when people saw the front page of
USA Today, with its banner headline "Bull run gets solid footing,"
heads shook and there were mutters of "it's a top."
That's an
outgrowth of the contrary indicator thinking that once mainstream media
picks up on a market trend, be it bull, bear, pig or whatever, the trend
is over.
Actually it is when the mainstream media says something like "Bull Run on Solid Footing" then that usually means that Bull Run is nearly over. This reminds me of the apocryphal story that JP Morgan was getting his shoes shined on his way to work and the shoe shine boy gave him a stock tip. He was said to have sold millions of dollars in stock as soon as he got to his desk. Morgan thought that if the shoe shine boy was long the market then he should not be in it anymore and needed to take money off the table.
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