You have to be careful how this rule of thumb is applied:
When guys like Mickey...who are the true bulls of the world throw in the towel...that is generally a very bullish sign. It is a signal that the bottom is in sight....
That rule of thumb assumes every stock has a bottom and a bright future. Statistics show us that the vast majority of publically traded companies fold and go out of business. Just because the largest bull throws in the towel, that does not mean the company is going to turn around. I think your rule of thumb is better applied to markets rather than individual stocks because we can all assume that markets in general will turn around at some point, even if it takes them years to do so. This is not always true with individual companies.
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