Here's a good article by Gary Kaltbaum which analyzes the top in Krispy Kreme's stock. Once again, a simple moving average strategy would have gotten you out long before things got really ugly.
The moral of the story, according to Gary:
Since, the stock continues to hit new yearly lows as talk of bankruptcy and accounting investigations pervade the air. I am writing this not to upset those that may still have the stock. I am writing this because you need to know the stock's action gave clue after clue that there were troubles ahead. ENRON showed the same clues. WORLDCON...I mean WORLDCOM showed the same clues. They all show the same clues...MASSIVE SELLOFFS AS THE STOCK CONTINUES TO BREAK SUPPORT.Never get caught in the web. Never let your emotions get the best of you. Always let price and volume action be your guide and always err on the side of caution when you see this type of action.
