Well, so far today the market is rolling forward As God Intended, and I sold my SPY, thanked it very much for its profit, and am pure bear again. One of my positions is Aeropostale, symbol ARO. Looking at the 10 year daily chart, which is my usual perspective, I was wondering if it was “bottoming out”……….
But it’s important to remember that the bottom of a chart is $0.00, not whatever the lowest price on the chart was. So with a bit more perspective – in this case, a 20 year daily chart – I saw that the opportunity was simply glorious. I’m hanging on.
It wasn’t that long ago that I would have never shorted an “already-battered” symbol like ARO, but I’ve learned that battered stocks sometimes go on to get more battered. If only I had done the same with JCP, which Dutch often pointed to as a symbol heading ultimately for $zero!