A friend talked to me yesterday - he lost almost 70% value in some of his stocks. Is it too late to cut loss? My answer to him was - Hell YES, it is too late. If he thinks he has bought into some hopeless fundamental stocks, he should sell on rebound (10-15%). However, if he bought into good fundamental stocks, he should add his positions, sell it again on rebound. This can help to minimize his losses but may not recover all his capital.
Dow dropped by 7% overnight, I believe Dow is capitulated. I saw two interesting charts yesterday on this site: http://www.321gold.com/editorials/hoye/hoye100808.html. You may want to read that article. Here are the two charts.
(Click images for sharper and larger image)
Good luck for today!
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