The anonymous blogger who goes by the name Jesse Livermore, @Jesse_Livermore on Twitter, made a comment today that the market was tired.
With all due respect to "Jesse", whom I really like:
That's nonsense.
Tired a physical state that can befall people and other living things. Stocks don't get tired. Markets result from the actions of people buying and selling stocks in this context. I assume Jesse knows this and is just using shorthand for the situation that he sees, that the market has reached a top and that there are more people selling than buying at current prices.
But buyers aren't "tired" of buying. No one ever gets tired of making money. This is what traders and investors do. They buy stocks. They sell them when they don't think they are going up, but they don't get tired. If they get tired and go home, they neither buy or sell stocks, and the price doesn't change.
My point is, don't think of markets in terms of human actions or situations. Markets don't get tired, or sleepy, cranky or annoyed, happy or gleeful. Stocks move up based on whether someone is willing to pay a higher price, and fall when they don't.
OK, now I'm tired.
Nothing in this blog is recommendation to buy or sell anything.
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