long, even while the "lemmings" are still buying and trading volume remains high, there is a subtle shift. New highs are not held. New intra-day highs become losses at the close. Soon the shift become real selling and the deluge begins.

But the lemmings, who are emotionally still extremely bullish (running in herd fashion toward

Recently I read an article that ended a long standing belief on my part. On an "Urban Legend" website, I discovered that Lemmings do not herd together and commit mass suicide by jumping off cliffs.

Why I believed this in the first place I do not know, but I guess I never had any reason not to.

The legend apparently began when during a 1958 Disney nature documentary, the film crew induced lemmings into jumping off a cliff into the sea. They then documented their suicidal behavior and used it in the movie "White Wilderness."

There goes one more childhood belief.

Real Life Lemmings

But the suicidal behavior of lemmings, though not true of lemmings themselves, does have close counterparts in the real world.

What? Can this be true?

Think of any stock market bull rally that is nearing a top. Volume spikes as traders rush to buy stocks they would not have even looked at a few days or weeks prior. Sentiment is at bullish extremes and every industry, regardless of profitability, is relentlessly purchased to extremes of valuation.

In the very midst of this buying frenzy. When traders are going to bed each night and dreaming of being rich, there are those few individuals who refuse to be affected by the emotions of the rally. They start taking profits. Some start selling short.

Before long, even while the "lemmings" are still buying and trading volume remains high, there is a subtle shift. New highs are not held. New intra-day highs become losses at the close. Soon the shift become real selling and the deluge begins.

But the lemmings, who are emotionally still extremely bullish (running in herd fashion towards

en during a 1958 Disney nature documentary, the film crew induced lemmings into jumping off a cliff into the sea. They then documented their suicidal behavior and used it in the movie "White Wilderness."

There goes one more childhood belief.

Real Life Lemmings

But the suicidal behavior of lemmings, though not true of lemmings themselves, does have close counterparts in the real world.

What? Can this be true?

Think of any stock market bull rally that is nearing a top. Volume spikes as traders rush to buy stocks they would not have even looked at a few days or weeks prior. Sentiment is at bullish extremes and every industry, regardless of profitability, is relentlessly purchased to extremes of valuation.

In the very midst of this buying frenzy. When traders are going to bed each night and dreaming of being rich, there are those few individuals who refuse to be affected by the emotions of the rally. They start taking profits. Some start selling short.

Before long, even while the "lemmings" are still buying and trading volume remains high, there is a subtle shift. New highs are not held. New intra-day highs become losses at the close. Soon the shift become real selling and the deluge begins.

But the lemmings, who are emotionally still extremely bullish (running in herd fashion toward

lemmings themselves, does have close counterparts in the real world.

What? Can this be true?

Think of any stock market bull rally that is nearing a top. Volume spikes as traders rush to buy stocks they would not have even looked at a few days or weeks prior. Sentiment is at bullish extremes and every industry, regardless of profitability, is relentlessly purchased to extremes of valuation.

In the very midst of this buying frenzy. When traders are going to bed each night and dreaming of being rich, there are those few individuals who refuse to be affected by the emotions of the rally. They start taking profits. Some start selling short.

Before long, even while the "lemmings" are still buying and trading volume remains high, there is a subtle shift. New highs are not held. New intra-day highs become losses at the close. Soon the shift become real selling and the deluge begins.

But the lemmings, who are emotionally still extremely bullish (running in herd fashion toward

profitability, is relentlessly purchased to extremes of valuation.

In the very midst of this buying frenzy. When traders are going to bed each night and dreaming of being rich, there are those few individuals who refuse to be affected by the emotions of the rally. They start taking profits. Some start selling short.

Before long, even while the "lemmings" are still buying and trading volume remains high, there is a subtle shift. New highs are not held. New intra-day highs become losses at the close. Soon the shift become real selling and the deluge begins.

But the lemmings, who are emotionally still extremely bullish (running in herd fashion toward

long, even while the "lemmings" are still buying and trading volume remains high, there is a subtle shift. New highs are not held. New intra-day highs become losses at the close. Soon the shift become real selling and the deluge begins.

But the lemmings, who are emotionally still extremely bullish (running in herd fashion towards the cliffs) hang on. Finally, they start taking losses and as those losses grow, the lemmings start to feel the pain. They are not sleeping as well. The dreams are turning to nightmares.

Finally, the lemmings stampede. They start selling. The selling increases and after awhile, it becomes a deluge as all the lemmings try to unload their huge losing positions at the same time. They are now jumping off the financial cliffs en masse.

Real Life Lemmings Hit The Bottom

Now the lemmings have cashed out most of their positions. They have had it with stocks. They go to sleep with the security of knowing they will never put themselves in such a losing position again. Not ever!

As the lemmings take comfort, some astute traders see an advantage. They start buying into the severely depressed stock market. Slowly the market turns higher. More traders jump in and before long, another market advance is born.

Never fear, our lemmings will not be swayed. The vast majority of them, having been burned once, are not going to be burned again. Or so they say.

"...It happens over, and over, and over again. From Dutch Tulips, to great financial crashes. History always repeats." But oh, the easy money they are missing. The financial news talks incessantly about the profits being made. Their friends are making go