Summary
Phil presents two Gann rules via Tesla and J.C. Penney examples. Tesla: never short a stock breaking above prior tops, especially on a 4th approach (shorts lost $20B in 2020). J.C. Penney: never buy a stock in a downtrend — “cheap” stocks can go to zero. These are Phil’s first Gann class lessons on capital preservation.
Key Claims
- Never short a stock breaking above prior tops, especially on the 4th approach. — confidence: high
- Tesla shorts lost a collective $20 billion in 2020. — confidence: high
- A stock is never “too high” to go higher — never “too cheap” to go lower. — confidence: high
- Never buy into a confirmed downtrend. — confidence: high
- JC Penney investors who bought “cheap” shares during bankruptcy proceedings lost everything. — confidence: high