yields, I think you missed LG's point. He was suggesting to fman to sell because he was in a losing position, not because he thought EGGS was going down (I don't know what LG thinks about that). His advice was don't stick with a loser waiting for it to come back to your price. You can get hurt a lot more in the interim and it may never come back. Better to sell at a small loss and buy again when the bottom appears to have been reached.
(aside to fman, earlier you had a question about the tax consequences of a wash sale as LG is suggesting. the answer is easy. if you buy the stock back within 30 calendar days of the sale at a loss. you simply add the amount of the loss to the basis of your purchase. therefore your new purchase starts with a higher basis).
Now, regarding EGGS, IMO it has finished building its base for a run up. The test did not make it to 10 7/8, but close enough. Could go all the way to 15, if tomorrow is a super strong day in the markets, as I expect (relief rally because we all just love Clinton so & now that he's confessed his sins we want to show him how much by throwing all our money at overpriced stocks -- my prediction -- if he shows tears tonight we'll probably have 200 points up tomorrow, if both he and the wife are crying probably 300 points & if he, the wife & the daughter are all crying -- 500 points! [I'm assuming the dog will be kept out of the picture caused that would look too much like Nixon's checkers speech -- but if I'm wrong & the dog is there crying too, then DOW 10,000!!]
Kip
BTW, where is fman anyway? Did he take LG's advice, sell & abandon the thread? |
