When a stock gets extended, start looking for signs of exhaustion.
Minervini talks about this when discussing selling into strength during late-stage runs.
Here’s a quick checklist I use when a stock has gone vertical:
Reversal / exhaustion signals
• 70% or more up days over a 7–15 day period
• 6–10 days of rapid advance with only 2–3 down days
• Climax move (price up 25–50% in 1–3 weeks)
• Largest up day of the entire move appears late
• Widest daily spread from high to low
• Multiple gap-ups during the run
Volume warnings
• Heaviest volume of the move on a down day
• High-volume reversal near highs
• Heavy volume but little price progress (churning)
The key idea: institutions usually distribute on the way up while everything still looks great.
By the time weakness is obvious, the move is often already over.
Example below from Minervini showing MNST running +58% in just 8 days before topping.
