Awful Daily and Intraday Stock Charts
At year end, I sold 12,000 shares at 14.20 or so. I pictured it'd be weak and I'd be able to get back in cheaper a few weeks later. I did not picture this rout to below 11 on just January 11. A good case can be made based upon how badly the charts look for YRCW to trade below 10 and test the area between 7 and ten where it traded for about a month in November of 2013. There's also a decent chance of YRCW falling back to trading between 6 and 8 for a few weeks like it did just before the big gap move up in May of 2013.
The DJT says we're in a bear market. CSX reports on T 1/12 after the close and KSU reports on F, 1/22 before the opening, no truckers are reporting until the following weeks. Six days into the year, with nearly every day down at least 1%, we're likely due for another 5 to 10 days down another 10 to 15% with one or two slightly up days out of every 5. We're not likely to get a crashing reverse V bottom where the market drops 5+ percent from the opening and comes roaring back 1 or 2% above the opening price. Since that's what everybody's looking for -- it won't happen. What happens most often in badly oversold markets is that they become even more badly oversold. They do not magically reverse.
Most people in today's markets have NOT experienced a wrenching bear market where most everything goes down day after day and where nearly everybody who shorts does so too late in the game to make money, but with plenty chances to lose money covering at a loss on the 1 or 2 days when the market spikes up. Many people who have retired early with plenty of money with little market trading experience are about to get plenty of experience, and much less money.
