What matters more than the news, is how stocks react to news.
Case in point our recommendation on Monday of Arkansas Best (ABFS) a trucker. Their earning report was heinous. The stock started yesterday down 10% but by the end of the day it was higher.
This reaction probably drove the shorts crazy. No it did. We are in this name because 20123 is a huge turn around year and the shorts are overstaying their position. The one thing I have learned is that short sellers are awful at timing their trades as they do not believe in technicals and the fundamentals will trump the technicals.
That gets to Rule #2 that we will discuss at a later date: Fundamentals RARELY trump technicals.If you enjoy the content at iBankCoin, please follow us on Twitter