Well, that was stupid.
I’ve got a bias against Carvana. The company was founded by a convicted felon (well, he had to have his son do it, but that’s another story) and it just reeks to high heaven. Yet inexplicably it has gone up massively. Based on little more than spite, I shorted this thing a few days ago.
Last night, they came out with earnings, and my eyes bugged out when I saw they were roaring 10% higher. How can they keep getting away with this? I couldn’t stomach it, so I covered 75% of my position at a nasty loss.
You don’t need to be told what happened this morning………..
In fairness to myself, there are occasions when I cry “Uncle” based on after-hours earnings, and the stock in question is up even more by the next morning, carried by its own momentum, so it isn’t ALWAYS stupid. And yet I can’t help but recollect a certain little item I have in my trading rules which truly anticipated the insane chart above.
Sheesh. What a pisser!
