Today was a lucky day.
Market gapped up with job numbers and almost every stocks went along with the upside bias except for $FB that I happened to own.
Hey, fella, you’re going the wrong way! Did you get the memo about the job numbers?
I guess not. $FB continued to head south and when it passed thru the mid-point of yesterday up bar, I placed my stop below the intra-day low and got stopped out shortly after for a small losses. Good riddance was what I said to $FB.
Anyway, first order of the day was for me to buy back $GLUU I sold yesterday since the earnings report from the previous day did not result in a gap down situation. To me, if there is no gap down after earnings, it means the stock passes the test and the on going chart pattern can continue on. I’m still positive on $GLUU as long as its long-term support at $2.75 is not breached.
$CVI opened a bit higher and I added some more. So far, the chart looks good and is on track to test the $62 area.
$SZYM was also acting good in the morning so I added a bit more to round out my position size number. Later on, price action began to trek down but I decided I wasn’t going to mess around daytrading this stock. Sensing that it might come back up later in the day, I left it alone.
I wanted to invest in the LED market so I picked two of the LED related companies from The Fly’s LED list. I chose $VECO and $CREE because they are heavy players in the field. Indirectly, I also own stock in LED by way of $TINY. $TINY has venture capital investment in BridgeLux that focuses on more cost efficient LED manufacturing with better lighting. An IPO on BridgeLux (or buyout) once it has proven itself in the LED marketplace will stimulate $TINY price action in a very nice way is my 2 cents. In the meantime, I prefer $CREE and $VECO over $RVLT and $LEDS. One look at $LEDS and $RVLT SEC filings of Income statements and I know why $TINY’s BridgeLux will succeed. In $LEDS, the cost of revenues was twice the size of revenues itself! How do you make money when your cost is twice the size of your revenues? In $RVLT’s case, cost of revenues was still larger than revenues itself but not to the extent of $LEDS.
Note to self- keep an eyes on $RVLT and $LEDS for possible short.
$AAPL had been trying to hypnotize me to fall asleep by trading around $450 and $451 all day. Nevertheless, the small spinning top with relatively low volume looked like a recipe for an island top reversal candlestick pattern. Of course, it needs to be confirmed with a down day on Monday but I’m not going to chance it. Therefore, I moved my stop close to $AAPL intra-day low and got stopped out for profit pronto.
$BCRX had a hiccup day when price trekked down below $1.90; however, I’ve since made up my mind to hold this one over the weekend. It is a good thing that price came back up to neutral by closing bell.
Today was my lucky day because $AMRN did not trekked down to my swing trade entry point. After an earlier false start in developing a bullish harami in the morning on the daily chart, price action weakened later and traded back down to negative territory. If there was anything that could dull the excitement of a strong DOW day, this was it.
Yesterday, I talked about how it was so easy to mix up your swing trade do’s and don’t’s with the position trade’s on the same stock. The fact of the matter should be how I had decided to play the swing trade. If I decided that I would play the swing trade using only the stop to cut losses and ride the trend with the core position; then that would be my rules to go by. I should NEVER contradict myself by suggesting that I “should have” taken profit like any swing trade position. Sometimes, it is SO EASY to slap yourself around by applying your swing trade rule against a decision you originally made that deviated from the swing trade rules. Having seen the light, I accept my earlier decision on my $AMRN swing trade and is now feeling good about my position. No more feeling bad about what I “should’ve, could’ve” done with my “supposedly” profit-taking scenario.
Current holdings:
AMRN, LRAD, SZYM, TINY, VECO, CVI, BCRX, GLUU, CREE and 20% cash.
The trades I made in the journal were time-stamped in twitter
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