General Expression of the Cycle of Market Emotion

In general, ordinary people react to market condition with the emotion like below without fail:

And this is how the smart players make their fortune out of the market. Smart players understand the market sentiment and what to do is make use of it to attract hot money that have the feel to earn fast money and when they come, quickly pour some cold water to cool the market down and chase away the dumb followers, leaving profit with them. Of course, this is just general expression, and general explanation. The market is much more complex and hard to master because there are millions of dumb followers, and many smart players as well.

The rule of thumb is, still, when you see the auntie in wet market start to talk about stock, it means market has more or less reach the tip and smart players is preparing to cool the market down. Therefore, your reaction should be, start to release what ever you have in hand and realize the profit. Wait for the next round of accumulation.