Peak Indicators

When the stocks move higher and reach new highs, more and more people try to predict a peak.  Fundamental valuations, technical divergences, and extreme sentiments are the parameters people use for predictions. All these parameters are relative. They might work in some scenarios but not others. To me, timing is the key. Trading is like a battle, you need to explore the situations to find out when to start, retreat, support, enforce, and end. Evaluate the situations and move along with the forces.

Currently following peak indicators are still missing:

• New low expansion
• Volatility expansion
• COPP cross and divergence
• Paper Cover Stories
• Extreme sentiments, like AAII above 50