Matthew Waterman
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Matthew Waterman in Brand Power,

Volkswagen Stock Returns To Selling After Bouncing Back By Over 25%

Meow.

What an amazing, volatile, and surprising week it's been. If you had bought shares of troubled automaker Volkswagen AG (VLKAY) (VLKPY), from the bottom on October 2nd, in spite of having zero meaningful fundamentally meaningful news published, you would have already passed a gain exceeding 25%, which when looking at market averages of about 10% annually, that was two and a half years of market returns inside the span of less than two weeks. You would have had the chance to lock in that amazing gain just 10 days later. I hope you did!

But if not, don't give up hope just yet. It's probably just a "Dead cat bounce", so to speak, but sooner or later things will come around with the market. At least you know where a point of support lies now. For time time being, Volkswagen shares have returned to being sold, down 76 cents today to close at $27.43. I would say consider adding to your position should the share price fall below $23. Most technical analysts would sell on a breakdown like that, but the longer I stay in the markets, the more I see every day that this is exactly the opposite of what you should do.