Zeev's Turnips Patch-No Politics (ZEEV)

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buy climaxes.lol.crooks dump on suckers at highs.Mark Hulbert
ANNANDALE, Va. (CBS.MW) -- What are buying climaxes?

I'll give you a clue: They're not good, and there were a record number of them last week.

A buying climax, according to Michael Burke, editor of Investors Intelligence, occurs when a stock makes a new 52-week high and then closes down for the week. "Buying climaxes are often the first sign that a hot stock is running out of steam and therefore provide not only a useful warning signal for a coming change in trend but very often signal the top itself. Buying Climaxes are a sign of distribution."

That's what makes the stock market so precarious at current levels, in Burke's opinion. According to his calculations, in the week ending Friday, June 20, there were 325 buying climaxes, which is "well above anything previously seen."

The previous record came in May 2002, when 223 buying climaxes were recorded in a single week. That came just prior to the Dow Industrials ($INDU: news, chart, profile) plummeting from above 10,000 to its July low below 7,500.

Prior to May 2002, the previous record was 150 buying climaxes. That number was recorded in late May 2001, which turned out to be very close to the stock market's high for that year.

http://cbs.marketwatch.com/news/story.asp?guid={15EEDB6F-557...