We can talk about when to sell but how about how to sell.
I learned from Karen Cramer, the master, that there are two ways to sell: the bad way and the good way.
The bad way is to blitz a stock and to get out at all costs, usually by the end of the day.
If you have a lot of stock you just tell the trader, "I don't want to see this on my sheets anymore."
That usually precipitates a broken stock and then a broken chart and a broken position.
Then there are more sellers who come in with the same motivation which is to beat still other sellers regardless of what's being done at the company. That's what is see happening at CVS Health (CVS) where the last word came from CEO Larry Merlo who took numbers down to below $7.00 for the year and made the stock a total pariah.
All we see now are sellers saying "get this off my sheets" without any recognition that at this level buyers would come in if you just give them a chance. It is not often that you get a high-quality company with a stock that is cut in half and a higher yield than I have ever seen this stock trade at.
People keep saying what a horrible mistake this one has been. I freely admit that we are wrong now. But CVS is not an old stock as some would say and it is not a candidate to be crushed by the Death Star, Amazon (AMZN) , even though many think BECAUSE OF THE ACTION it will be.
The action is bad. The stock is cheap. The pressure on the holders is ridiculous. But I sense that this is one where many shareholders can no longer take the pain and will sell at all costs.