Quote Originally Posted by MTman View Post
Mike - It seems that parabolic moves end with stocks having climax top type action as defined by O'Neil in HTMMIS. The only stocks that seem to be hinting at this might be some of the oil and gas plays. Until we get 1-3 weeks of huge moves in the leading stocks (which would indicate climax tops), it seems these quick pullbacks are simply shakeouts. The Put/Call ratio seems to indicate we are due for another shakeout. Your thoughts?

Mark
You could be correct however almost every stock that I would like to own is quite extended. The last two times the Log Periodic Power Law suggested a regime change led to short term pull backs which indeed was a regime change. There just seems to be too much federal reserve pumping up the markets to get too excited about a long term decline at the moment. So we might pause here and go on to new highs, or perhaps real weakness will develop. As to the shorting comment, most good short positions develop 5 to 7 months after a stock tops. If we are topping out here there will be time.