The "Hite" Trade

hadn’t read Wizards in more than five years, but over the Christmas vacation a vague recollection of quote from Larry Hite popped into my head and took my scalping to a whole new level. Larry Hite is one of the legendary traders profiled by Schwager who generated 30% annual returns for 13 years running before retiring in 1993. This is what he said, “When a market makes a historic high, it is telling you something. No matter how many people tell you why the market shouldn’t be that high, or why nothing has changed, the mere fact that the price is at a new high tells you something has changed.”