O’neil says, “if new high prices make the crowd timid about buying it, then that is likely the precise time to be buying the stock.”

Livermore is quoted saying, “Never sell a stock, because it seems high priced.. Conversely, never buy a stock, because it has a big decline from its previous high. The likelihood is that the decline is based on a very good reason.”

These two don’t make sense to me. Stock are priced based off of the crowd and what the crowd thinks the stock is worth. So.. if the crowd is weary at an all time high (and they sell their shares, which brings down the price of a stock), what makes the stock price go up.. is it future earnings that brings it back up?

More importantly (to me), if the crowd’s fear drops the price of a stock, why would it be a bad thing to buy a stock that has made a decline from its previous high like Livermore warned (since the decline is based off the crowd – which we think is irrational anyway). Why does Livermore say that the decline is most likely based on a very good reason?
Obviously there’s more to selecting a stock than to pick the ones with all time highs and to avoid the ones making a dip.. but these are just one of the pointers history’s “experts” tell us to look for. I’m merely questioning it.

Why are the Dow and S&P 11% off their all-time high? Why do some economists keep insisting a) the credit and housing crisis is over, b) consumers will keep spending, c) the recession will be short and shallow?

How do you find a list of stocks that are at their all time highs today?

Where can I find a list (like in a news paper, stock screener, I dont know) of US stocks near or at their all time high

Thanks