PPR - HLSS follow up
We reported on HLSS pocket pivot on January 17. Since then, it has headed higher, but with today's earnings report, it fell all the way back to its 50-day moving average where it gained support. It has since recovered all of its losses. For those whose sell stops were hit, HLSS can be bought back if it closes at or above yesterday's close. Knowing that a stock's volatility can surge on earnings report day, one should not be surprised in the rare case a stock sells off then recovers as the battle between the bulls and bears ensues.
Bottom line is always heed your stops. A number of investors following the 7-week rule would still be in HLSS as it technically has not violated any moving average yet. That said, were HLSS to have busted through its 50-day moving average tpday instead of getting support, a sell would be wise since a stock can fall a lot further.
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