On October 28, 2013 in these very pages of Slope of Hope, we mentioned:
“Coach took a header on earnings last week. But it was punished far too much. It’s now oversold on RSI and MACD.”
Here was the chart at the time…
It was also under the lower Bollinger Band and oversold on Williams % Range. DMI put in an unsustainable bounce that has to correct itself, I noted at the time.
Again, I was told I had no idea what I was doing by one of my Speed Retirement System readers. My “fan,” if you will.
My “fan” took the short side of the trade with a $5,000 bet on put options. What was I supposed to tell him? That he’s a fool?
I took the long side with calls.
Guess who got burned and lost $5,000 on this move?
Not too shabby…