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.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2020 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.