If a stock is 70% to 100% above its 200-day moving average it may be hitting a climax top. This sell rule, like the others, is meant to get you to start looking at other signs of weakness in a stock. You should not sell a stock based on a single indication of trouble. Rather, consider selling a stock if it starts showing several signs of weakening or climax, such as an exhaustion gap. Of course, we always urge investors to sell any stock that falls 8 percent below the purchase price.