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Monthly Archives: April 2013

Be mindful of Time-of-Day continuation pattern

While the $SPY is struggling back to the upside; be mindful of the the time-of-day resumption of the overall current down trend.  I’ll pay attention to the price action around 02:30pm EST or 11:30am PST.  Any major dumping around that time can easily take the $DOW down another 100 points or more.

Notice the 5m $SPY chart below.  There are two 79 & 89 ma that act as resistance; in other words, this rally you are seeing may be a trap…



Be safe!

My 2 cents.

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Alert! The BEAR has broken through MAJOR SUPPORT

Take a look at the $SPY daily chart below.


Market opened below the Giant Wall One support and that to me was a big red flag for the bull.  It’s going to take a LOT more effort to climb back up to take out the resistance of this Giant Wall One which was once a support.

Needless to day, I placed all my swing order trades to sell at open using market order.  There was no if or but or “wait to if there is a bounce” type of mental digression.  All were for small losses except for $FB which I still had a healthy gain.  When a bad payroll data came out and market tanked like this before market open, I like to stand aside with more cash and see what happen next.  I do not like to watch with my cash at risk.

The way I see it, all mini-rallies are shortable.  I’ll be looking for short as a day-trade.

Holding only my position trades LRAD, AMRN, TINY and 67% cash.

Be safe!

My 2 cents.

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Today Portfolio Adjustment (04-04-2013)

Today definitely was not a boring day.

$FB opened strong and I added more.  However, later on price began to take a dive and I moved my stop to breakeven.  Could this be a trap?  Boy! Was it closed!  I was almost stopped out but there were enough buyers coming back to bid the price back up.  Seeing a bounce happening, I added more.  Later on, when the Facebook new home app was announced, price action started to kick off to the upside.  I added some more before it took out $27.00 resistance.

I’ve reason to believe this new “home app” is what Facebook needs to take off from here.  In practical speaking, this isn’t a bad idea at all.  I think I’ll create a Facebook account just so I can install this app on my Samsung Note II smartphone.  This is almost like a Steve Jobs’ kind of idea.  Don’t you think?

After I added $FB, I also bought back small starter position on $DCTH, $MNKD, $POT because I wanted to be back in these position giving that there were no waterfall price action on the general market.  In other words, there were no follow thru from yesterday bad-ass bearish engulfment bar on the $SPY.

I also like $CCJ since the price action was near the low of late December and early Jan support.  It is a good risk/reward ratio.  Being back on uranium, I’ve to buy $DNN too.  To me, $CCJ and $DNN go together.

I also bought starter position on $DDD; but this one was for naught since I got stopped out later for small losses.  I didn’t look at it again for the day; thus, I missed the late day bounced back.

I was stopped out of $MNKD since I put a close stop.  But seeing that price did try to bounce again, I bought back a smaller batch.  I added more later when the bounce became stronger.  I decided to give it room to run around; therefore,  I left it alone for the day.

I also bought $AAPL for a daytrade when I saw some stabilization on the price but was stopped out for small losses.

Then I saw $IMUC during my stocks patrolling.  It bounced beautifully off the uptrend line so I bought back my shares I sold awhile ago for small losses.  I like to remind you again and again that you have a very good chance of buying back your stocks if you cut your losses fast for a much lower price.  Not that it will happen all the times but it happens often enough such that you should not feel too worry about losing your position if you bail out earlier to take small losses.  This is strictly a swing trading tactical maneuver.

$SZYM was really bugging me so I decided to sell the rest of my lot so I didn’t have to waste time watching it.  But I will buy it back if it shows some sort of bottoming out pattern.  I’ll probably have to pay more to buy it back; nevertheless, I get to be free of this nasty thorn on my butt for now.

$POT was acting neutral after a strong early bounce so I decide to hold it for tomorrow.

I also bought $APRI back but forgot to post it on twitter.  Oop!  Since I only bought a starter position, I left it alone all day also.

Current holdings:



The trades I made in the journal were time-stamped in twitter

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$POT is still acting noncommittal

With a strong bounce back in yesterday nice dragonfly candlestick bar, today action was almost an upside down version of yesterday bar.  Now, put the two together and Voila!, you have a doji bar.  A doji is to be considered a neutral bar where neither the bull nor the bear win the day.

Since my position is kind of a neutral, I will let the price action decides for me tomorrow.



However, looking at the chart basing , it sure does look like it wants to go up badly…

My 2 cents.

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Facebook is now facing you!

That’s right!  If you have an Android phone, you can now install Facebook on your home screen and you will have Facebook facing you everyday.  Wow!  Isn’t that fantastic?

Yes! Yes! It is absolutely fantastic because the stock price has been going up.  With regard to the Android Facebook home screen, I leave it to you to decide.

Take a look at the 10m $FB chart below:



Isn’t that a beauty?  Although I had a close call of almost getting stop out at breakeven.  Thanks goodness price never got to my stop.  Whew!  However, when $FB started to bounce near my stop, I added some more. I also added more when it got to the high $26.xx area.

Below is the daily chart.



Notice that the 5m moving average line is going to be crossing the 15m moving average line.  This is confirmation of a bottom here.  At least, it improves the statistical significance of a bottom being formed.

My 2 cents.

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Here is a good looking bounce for $IMUC

The bounce happens right at the uptrend line.  Like a perfect orchestrated maneuver, price bounces on cue.

Take a look at the daily chart below and you know what I mean.

Notice how the fast stochastics line below begin to turn up.

Remember, just because I sold out my position for small losses doesn’t mean I’m not watching it anymore.  You see, by cutting my small losses earlier, I get to buy $IMUC back on a cheap in the right place with a good risk/reward ratio.  This is what swing trade is all about.  Of course, it won’t work like this all the times but it will work enough that you know cutting losses earlier is the way to go.

And yes, this bounce has yet to prove itself; but I like it here better than when I was holding it from high up.

My 2 cents


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Today Portfolio Adjustment (04-03-2013)

Today was like a game of whack-a-mole except that I was cutting losses as they popped up.

Market actually opened with positive bias with $FB and $POT opened higher.  Immediately, I bought back $FB and $POT at the market open since I sold out my position yesterday.  I wanted to own these two if market rally continued.

$DCTH opened a bit lower and I was ready to bail.  I waited a bit but then someone got ahead of me and dumped.  Not to miss my music chair, I immediately sold half of my position so as not to give back too much profit from earlier this week.  Later, when I saw that $DCTH could not bounce back; I just sold the rest of my position at around the same price I sold the first half.  It was a good thing because price eventually broke down further to take out $1.80 support.  By end of day, price was at $1.80.  I’ll see if price can take out $1.80 resistance tomorrow before deciding if I still want to play.

$DDD bounced higher from yesterday close so I bought back a starter position with a stop at intra-day low.  It was a good thing my stop was there ’cause $DDD tanked further down after my stop was hit.

I also had a stop for my $POT position at intra-day low and it was hit for small losses.  $POT eventually caved in and headed lower; but it valiantly bounced back by end of day.  Giving the way $SPY was doing its waterfall thing, I decided to wait for tomorrow before deciding if I wanted to go back in or not.

By the time I took a look at $S, it went down further than I wanted to see so I sold the whole lot for losses- not small but not big either.

Then $MNKD began to cave in as well and all my morning gain was gone.  I was at breakeven and the daily bar didn’t look good; so I sold 60% first.  And when I saw red everywhere on the quote machines, I decided I didn’t want to hold any swing trade until the bearish sentimental was gone.  I sold the rest of $MNKD not long afterward.

While I was selling $MNKD, it was natural for me to sell $APRI also since price was not moving that much.  I sold $APRI the same way I sold $MNKD- in two pieces.  I took  a small losses from the sales which was no big deal.

All of a sudden, I was in the whack-a-mole mode.  I started looking for position to whack.  I saw $TINY and decided I was holding too much for the coming correction.  There were large bids there to handle my sales so I took it.  Whack!

Seeing the large bids didn’t disappear after my first sales, I sold another batch.  Whack!

With whack-a-mole, you want to whack another one after you’ve whacked the first one; so I moved on to $SYZM and sold my position down to 13% of my original size. Whack!

But when I came to $FB, I stopped myself ’cause this guy was making me money.  So, no whacking here; instead I moved the stop to breakeven.

After all the whacking, I felt good with 61% cash.

Current holdings: LRAD, AMRN, FB, TINY, SZYM and 61% cash

My 2 cents.


The trades I made in the journal were time-stamped in twitter


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Tomorrow is judgement day

Be prepared to hold on to your wallet…

In order for the Evening star to be confirmed totally bearish, price needs to take out the low of today and never look back.

Currently, $SPY is making a valiant attempt to bounce back.  Will it hold?

Which way will it go tomorrow?

Stay tune.

Meanwhile I’ve raised my cash level to 61%.

Be safe.

My 2 cents.

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Here comes the dreaded evening star

Well, we are finally being dealt the dreaded evening star bearish candlestick formation.  And the worst part is that it is occurring at the level of GW2 which is usually an indication of a topping pattern.  In a manner of speaking, the probability of a nasty correction is high.  So, hold on to your rail or cut your losses.

Like The Fly, I’m building up cash by getting rid of my swing trades except for the recent biotech I’ve bought ($MNKD & $APRI) and $FB.  However, once these three start to turn red, I’ll dump them for cash.

Below is the daily $SPY chart:


Look at that ugly red bar today? Yuk!  Notice also that the short-term up-trendline is broken soundly as of now.

Currently holding 43% cash.

Be safe.

My 2 cents.

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Today Portfolio Adjustment (04-02-2013)

Today was a busy day for me because I made a lot of adjustment to my portfolio.

In the beginning, $AAPL looked like a racehorse getting anxious to get out of the starting gate.  At market open, $AAPL had some volatile range but once it settled down a bit I bought a starter position with a stop below the previous pivot-low for a close stop.  Price sped off quickly and I moved my trailing stop quickly as well; but before I knew what happened I got stopped out for profit.  $AAPL then gyrated between +$6 & +$7 area so I decided to leave it alone.

$DDD looked good also in the chart so I bought a starter position as well.

$FB opened up and was trading above the half-way point of last Wednesday bullish engulfment bar, so I bought back my position.

$DCTH was acting uncommitted so I decided to sell half of my position to lock in gain.  I didn’t want to take chance of giving back my gain while I wasn’t looking.  However, later in the day, $DCTH showed a strong resiliency in the $1.91 area so I bought back my position I sold earlier plus some.

I found the charts on $MNKD and $APRI wanting last night so I was watching them in the morning.  Price actions looked good and holding well  so I bought starter position on them.

Meanwhile, $SZYM was on a tear to the downside and I had a feeling that this stock was not meant to be for me.  Again, for the upteen times, I sold down the position to cut losses and minimize exposure even though I told myself I would stick this one to the end.  But I was holding too much and I found an excuse to sell by reason that my money has a better probability to recover losses by putting it in $MNKD and $APRI where the upward force still exists.  If you are ever being indecisive about cutting losses; find another more compelling reason to force yourself to do so.  In this case, I want to re-balance my biotech holding by reducing $SZYM and increasing $MNKD and $APRI.  I don’t want to use existing cash so that force me to scale down $SZYM to 38% of original position.

Once the allocation was executed, I felt good even though I had to eat a big losses on $SZYM.  The thing about losses is that I know I can make them back; so I don’t sweat too much over it.

The charts on $POT, $FB, $DDD started to look like a balloon running out of hot air.  They looked horrible despite the fact that they were up during the first half of the day; without hesitation, I sold them all for small losses except for $POT which was breakeven.  You see, when the daily chart starts to look bad, I will NOT hesitate to sell my position especially when I see that the losses will be small.    Again, with hindsight, it paid to act fast and decisively since all three were down much further than my selling prices.

$MNKD went through some intra-day retracement and I took the opportunity to add a bit more.

$S was neutral all day so I left it alone.

Seeing $PACB was trying to bounce a bit, I bought a small position so I wouldn’t forget about it.

Current holdings:


My 2 cents.


The trades I made in the journal were time-stamped in twitter

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