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Market "blow-off" here Add to ...

Investment newsletter author Dennis Gartman uses "parabolic" and "blow-off" to describe what's going on with the Dow and markets globally these days. "We now have lift-off," he writes about the 283-point jump by the Wall Street industrials on Thursday, not even counting a 31-point advance on Friday. Just so everybody's on the same page, a market blow-off is a rally's last breath after a long period of rising share prices and is a highly bearish sign. Pointing to a Dow chart going back to 1983, he contends that the massive consolidation that took place from 1999 through early 2006 "marked the half way point of this bull move that began in early 1996 ... so then 16,000 is quite possible between now and the end" of the bull market. "When shares begin to move parabolically higher, only the foolhardy stand in its way," he warns. "As illogical as this might sound, one can buy almost anything between now and [the middle of August]... the momentum is that great and the short position is that large."

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