I am quite encouraged by the action in American Apparel (APP). After getting whacked again on Wednesday off a confusing earnings report and conference call, the stock has bounced back strongly. The initial post earnings trades held above the April lows and unlike in April a rebound got underway quickly. Also, volume spiked for one day but fell by 75% on the second day. If volume continues to slide and the stock works higher I think it will be a sign that the shorts are losing traction and any longs looking to sell are long gone. Positive catalysts lie ahead including new executive hires, compliance with Sarbox, and monthly comps at extraordinary levels. Given the history a negative surprise is possible but I think the tide may be turning here and if it does, the shares could double. I added in new accounts on the initial post earnings weakness.