I remember having a conversation about Weight Watcheres (WTW) when it was in its bubble...I was talking to a trader, a lady, when I said it would most likely head back down towards its 200-day moving average. At the time, it would need to lose 2/3rds of its value to do that. Well...here it is! Bubbles have enormous pops!
...from the $105's to the $29's, in a mere 6-7 months!
Yet, parabolic moves...how extended it was away from its 200-week moving average and how extended it was vs its history (away from its moving averages) ALL would have warned of this being a bubble and its risk of popping hard. Yet, at the time, people just don't want to see it. They just get sucked into it. Their greed grabs hold of them rather than logic. This is why I love using metrics that point this stuff out to me. That way, for those who choose to want to see it, can see it.
I remember you saying that. This is just more confirmation of your teachings.