TheStreet.com RealMoney

A New High Doesn't Mean 'Buy'

By Harry Schiller

 About this article:
 Maybe you can't believe in the Tooth Fairy or Santa, maybe the Lakers won't win the title this year, but some things are pretty dependable, and in this market, that's where I want to place my bets: on those patterns that recur over and over and over again. One such pattern is for the market to pull back to the prior highs after making a (higher) new recovery high. We saw that happen just yesterday after Monday's moonshot to new highs for 2009 on that much-ballyhooed pop above the 200-day moving average. On Tuesday, the SPX was closing in on the 950 level, almost 20 points above the May 8 highs at 930.17. From there, no surprise, the SPX would sell off back down to those prior highs at the 930 level and in fact almost fill the gaps from Monday's opening. Almost, but so far...

You have just read the beginning of a premium article from our RealMoney Service. To read the rest of this article and sign up for a FREE trial please click below.

ACCESS STORY & START A FREE 14-Day Trial
Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET.
Outside the U.S. and in Canada, call 1-212-321-5200.



Already a RealMoney subscriber? LOG IN.
Username: Page data is submitted securely.
Password:
Forgot your Password? Click here


100% Money-Back Guarantee
If you decide to subscribe and you're not completely satisfied with TheStreet.com RealMoney, just call us within the first 30 days of your subscription and we'll refund your full annual subscription price — guaranteed.




If you choose a 14-day free trial of RealMoney and you do NOT call to cancel within those 14 days, you will pay $129.95 — a $100 savings off the regular annual subscription price of $229.95. Unless you cancel before the end of that year, your subscription will automatically renew for another year at the then-current subscription price.

Offer applies only to new annual subscriptions, and is subject to change at any time. Void where prohibited.

If you choose a monthly subscription, you pay $34.95 per month. You will be notified if the current monthly rate of $34.95 changes at any time in the future.

TheStreet.com is a publisher. None of the contributors or their affiliates will provide you with personally tailored advice concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. From time to time, any or all of the contributors or their affiliates may hold positions in securities mentioned and they may trade for their own accounts. In cases where the position is held at the time of publication, appropriate disclosure is made.

© TheStreet.com, Inc., 14 Wall Street, 15th Floor, New York, NY 10005.