Summary

• Parabolic markets often offer a second, strong rebound rally after the initial crash, providing another chance to exit at acceptable prices. It was usually about six months later.
• Historical bubbles—1929 equities, 1970s gold, and 2000 dotcom—exhibited sharp declines followed by 50–60% recovery rallies before further losses.
• I advocate participating in current parabolic moves rather than exiting early, with plans to recommend profit-taking once the bubble reaches its extreme.
• Both selling at the top and exiting on the rebound rally are viable strategies, and I intend to employ both for Website subscribers during this cycle.

There are two selling strategies when stocks go parabolic.

The first is to try to sell at the top (very hard).

The second is to ride it up and over the top, then get out

9.05K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of QQQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.