A few institutions were in full panic mode on the open: immense sell volume overwhelming buyers. Remember, these are the same people that have brought you quarter after quarter of underperformance as money managers. Unfortunately, they own a lot of BKS, so they can snatch defeat out of the jaws of victory here.
My approach will be stone-cold rationality. Over the past several weeks, I have "loved" this stock as much as anyone. But the story today will be told by the tape. I'm setting a stop and sticking to it. If I get stopped out, I'll turn off the computer for the day, grab a sandwich and a beer, and forget about the market. The most frustrating thing about the market is that I, as an individual investor, can be "right" about a play like BKS/BNBN; but if "the market" doesn't agree, then I'm wrong. Plain and simple. It's the first thing we have to accept as traders.
I don't mean to sound overly gloomy or pessimistic. In fact, despite the lousy price action, I'd still expect to see an upward rally today, unless the institutions continue to pile out. I just want to talk realistically about how to approach a play that may be broken. Too often on these threads, I see people clinging on to stocks because they're right, dammit, and the market simply has to come around and realize it. The fact is: sometimes the market doesn't come around, and the people who are right end up holding the bag.
Don't be emotional. Tell yourself the truth about the amount of pain you can endure.
I hope I don't have to go out for that drink until after the market closes! |
