That was Benjamin Graham who said that, and you fudged up the quote in other ways as well.
Still the fact that the market is a weighting machine (and thus reversion to the mean, exists) has powerful implications.
Personally I think too much is being made about holders actions in response to the lack of a preannouncement - i.e., the big swoon. In my case (I originally bought the stock in August) I did not even know that they usually preannounced. I exitted in early January for two reasons 1. ezpw had not been going up with the s&p and felt heavy, and 2. it looked like we were headed into a deflationary environment with gold prices falling.
You long-term ezpw followers know Rotunda usually preannounces but I bet the majority of people did not.
I'm glad I got out when I did and even happier I bought it on the break.
Please keep up the great flow of information. A newbie like me really appreciates it.
Thanks, zyk, but I'm computer adept (I've spent 38 years in virtually every aspect of the IT business before retiring, including programming, managing programmers, running a help desk/field engineering group, etc) - I was hoping you'd know the process for posting a chart here (or someplace in Yahoo) so the rest of you could review it......I'm comfortable doing in the IBD forums, sow was wanting to do it here (if that's possible)......
Yeah... after thinking about it I tend to agree with you. There are many people who work for WON and IBD. I am sure many of them are amateurs who can't read a chart. I think it was Houston who wrote that the warning sign was probably done by some kid who saw the volume drying up, and read in WON's book somewhere that it is a bearish sign.
The volume dried up prior to earnings because people were afraid to buy in because EZPW did not pre-announce. A great many (like me) would not sell because we KNOW that EZPW moves on these data points (a nice 20% move this week). Therefore, the volume is low, and should not be a warning sign. The volume stayed low until IBD's mo-mo's sold out after the warning, and other weak hands sold because of some old news written by a liberal professor who doesn't know of what he speaks.
Who benefits from all this inaccurate information??? ME!!!