Hi Ray, Re: Ricochet Sales..................
In the past on many of my AIM individual stock holdings I've had some times when a stock has dropped precipitously and I've done significant buying on the short term. Then a week or so later the price/share starts to return rapidly to where it had been.
On the way back up, AIM will start to generate Sell signals. It started because I liked the graphs to look "pretty" but it's become an unwritten rule -
"Don't sell when the price/share is below the 26 week moving average."
See, I don't like those tiny minus signs showing up on the underside of the moving average!
Now that may seem like heresy to all the AIMers out here but in reviewing all the many times AIM's traded, it's only rarely that it signals a buy above the 26 week moving average or a sell below it. With such overwhelming statistics showing AIM's relative efficiency compared to the 26 Week eMA, I tend to agree with this technical overlay.
With CHY, the current 26 wk eMA is around $15.80. Right now AIM is telling me the same thing it told you, "Take Profits!" It remains to be seen if waiting until the price/share and the eMA converge will be better or worse for me. Statistically the odds are in favor of waiting.
So, I'm holding my breath!..................
Best regards, Tom
PS: the converse is also true. It's usually better, statistically, to wait until the price/share has dropped below the 26 week eMA before letting AIM have any buys.
Port Washington, WI 53074
