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Blow-Off Top

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Blow-off top
A steep and rapid increase in price followed by a steep and rapid drop. This is an indicator seen in charts and used in technical analysis of stock price and market trends.

Blow-Off Top
A sudden, rapid increase in a security's price followed by an equally sudden, rapid decrease. A blow-off top can result in large short-term gains, provided one sells the security at exactly the right moment. Just as likely, however, is the possibility that one will incur a loss by buying at the top price. A blow-off top can result from either sudden news or a rumor. See also: Reversion to the mean.


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I ask because these are the true signs that a trend has entered its final blow-off top and would signal it’s time to get out.
If that was not a blow-off top, we think that earnings reports will keep this market afloat for at least a few more weeks.
That’s why we could be in the early stages of a blow-off top for the markets - which you don’t want to miss – and there’s a rough down leg coming.
 
 
 
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