Sold a stock before earnings

Discussion in 'TIFU' started by anotherdevilsadvocate, Apr 29, 2016.

  1. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    Got shaken out by a weakening market. SPX rejected at the 2100 level, big name stocks like SBUX and AAPL kept diving below all major moving averages.

    I bought SCSS at the beginning of this week, when I saw an uptick in volume and price stayed in a consolidation range.
    [​IMG]
    The MACD was steadily rising during this consolidation.

    Next couple days had even more volume. Thought bed manufacturing sector must be coming into favor or something! (ETH had also had a big pop this week)

    But the weakening market spooked me, I didn't want a 20% loss (just look at the last ER gap). Also the topping tails in the 2 days into the ER, and it wasn't doing anything to confirm the blue trend line I had pegged as support. So I sold out, after much inner turmoil thinking maybe I should hold just a small portion at least (like 1/3 of a normal position). At least I broke even, so no loss.

    But this thing ended up making a 22% gain - that's better than 3x ETFs like NUGT and UVXY today.

    It wasn't even a great ER. Just the stock had been under accumulation and shaken out the weak hands. They gapped it up and got others to join in and raise it some more.

    http://www.fool.com/investing/gener...-comfort-corporation-stock-bounced-today.aspx
     
    T0rm3nted and StockJock-e like this.
  2. T0rm3nted

    T0rm3nted Moderator
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    That's rough. Look at the bright side though, it wasn't a loss!
     

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