Page 207 - THE MARKET WHISPERER

THE MARKET WHISPERER 20 3

advantage of the high to realize profits and to sell into the power, while
less-experienced buyers are chasing the stock, continuing to buy close to
the high. Now, many new buyers enter the market, and at this point, before

even earning a cent, they are highly sensitive to any small change in the

stock’s price. Just one tiny correction of only a few cents will be enough to

pressure them and cause the stock to return down with a sharp plummet.
This process is similar to the first failed Caterpillar breakout we analyzed
earlier.