TUA - Turners Auctions. A Case Study.
The technical approach.
This chart shows 6 separate indicators. All parameters were selected such that no sell signal was generated by the low of March 2004. You can see that all 6 indicators triggered Sell signals over a short period of time in September 2004, not long after TUA had peaked.
In the following 3 years, there have been no buy signals triggered.
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The fundamental approach.
This is an excellent example of the lack of correlation that can exist between company announcements and stock performance.
It shows the boundless optimism that some people can sustain in the face of unpleasant reality.
View it as an object lesson in the folly of buying into a downtrending stock and the inadvisability of "averaging down".
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