Mar

14

Sold Out, from anonymous

March 14, 2013 |

Speaking with a friend who is a broker for one of the big banks, he says his clients who exited stocks three years ago are calling wanting to get back in leaving instructions to buy on the first pull back. This is completely descriptive with no predictive value, but the H. H. Harper passage come to mind which I retrieved from google and I can certainly relate:

"Whereupon my friend, who occupied the uncomfortable position of a "sold out bull", became wretchedly aware that he had dropped out of the race long before the course was completed, and by doing so he had thrown away a grand opportunity.It may here be explained that the mental attitude of a "sold out bull" toward a rising market is much the same as that of a bulldog chained in his kennel while a dog fight is going on outside. A speculator may stand buy and view with unruffled complacency the most enormous profits of others in securities that he never owned, but if one of this own pet stocks continues to advance after he has sold out, it not only reflects the error of his judgment, but the remorse he suffers in contemplating the additional sum he might have made dampens all the pleasure of reflecting upon the profit he actually did make "

H.H.Harper circa 1924

Vince Fulco writes: 

A great practical example is CRR (carbo ceramics): I own a token amount in my IRA after being longer at lower prices. Not many pullbacks the last few weeks and every modest one, the stock then surges for a time. Frustrated buyers like I have never seen. This is not a "long & loud" tout; only mentioning because the action is so pure and outside the norm from other holdings. There is something about peeling off some on the way up which makes it easier to wait for the grand finale

Jim Lackey writes:

It's the opposite of the end of year "countdown to fiscal cliff". Now it is "count down to SNP Cash close highs". I'll make a prediction… it is the usual (+-)=2 points on PNL after one is involved with such mumbo back and forth whip saws.


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