Let me begin by saying, "I could be wrong!" (But, I don't think so.)
It's the technicals that got me out of this long term hold position today on RRI. When you see a candle whose length is out of proportion to recent candles, and on increasing volume, it's a strong signal of future price movement. Since today's candle was to the downside, instead of the upside, it's suggesting further weakness.
stockcharts.com[h,a]daclyiay[pb30!b50!c20!f][vc60][iut!Lb14!Lj[$osx]]&pref=G
There's always the possibility that it is an exhaustion sell off but, when you are dealing with profits, you don't take that risk.
I can see where some may think it was a decent place to start accumulating a position. I do think the timing is off though. Our goals are different, so this isn't a knock. A man's got to do, what a man's got to do.
From my perspective, buying as the price is still falling is "NEVER" a good trading strategy. I have been researching the buying and selling strategies of some of the world's best traders, and NONE OF THEM buy a stock with the price still falling. NONE OF THEM!
None of us would invest our money with a money manager that bought weak stocks while prices were falling. I'd love to see that brochure!
"I'm going to invest your hard earned money, in stocks in a weak sector with lots of bankruptcy possibilities, and I'm going to average down in my buying points. If we succeed, we're rich. If not, there's always more money where that came from, I hope. Keep them hard earned dollars coming my way!"
I wonder how much money would come our way?
Most of us would be fired as money managers if we invested other's money the way we invest our own.
Just some food for thought.
dabum |
