03-03-2014 Trading Journal

Market fell off the cliff today but managed to hang onto to the tree branch dangling above the consolidation range.

See how price closed back above the range?  I could see a bounce tomorrow.

Meanwhile, thanks to $KNDI and $CARA, my port made new high today.

$KNDI opened lower but bounced back to the surface rather quickly.

As you can see, the bear tried to push $KNDI down in mid-day but failed; price bounced back up to close near the high of day.  It was a nice looking bullish chart, you would think the general market was up today just by look at $KNDI chart.

My weekend research pointed me to $CARA.  It has a fantastic story of a pain-killer drug that is as strong as a morphine drug but without the opiate addiction side-effect.  Please pardon my pasting an excerpt from a contributor from SeekingAlpha:

The most exciting CARA compound is CR845, which is not a CB-acting drug. CR845 is unique because it acts on pain receptors in the same class as those acted on by morphine but it does not cross the blood-brain barrier, leading to significantly reduced side effects. This molecule is currently in Phase III studies for Post-Operative Pain, and had excellent morphine-sparing effects in Phase II results.

I couldn’t contain my excitement as I learned more about $CARA.  As luck would have it, due to negative market open, $CARA also opened down.  I jumped at the opportunity to build up a position while price was debating whether to go down more or to go back up.  I didn’t care if it would go down more ’cause I wanted to buy more.   As price began to climb back above water, I just kept on buying until I got the amount I wanted.

To my surprise, price began to climb much higher from my entry point during mid-day.  Although price gave back some gain from the high of the day, $CARA closed almost 13% higher for the day.

$SEED also performed admirably in the face of down market.

Price did bounce back from the support as I had predicted.  $SEED looks like it is going to go much higher soon.

Although $LRAD, $MZOR, and $KGJI all corrected a bit today, the gain from $KNDI, $CARA, and $SEED propelled my port to another new high today.

Current holdings:

KNDI, LRAD, MZOR, SEED, CARA, KGJI, SVA and 1.5% cash.

From my other account:

$FITX continued to head south and somehow, I wasn’t concerned at all.

Notice that price is getting near the 50% retracement area.  Currently, the heat I’m taking is being absorbed by the gain I made from $XTRM earlier before I got into $FITX.  In the back of my head, I somehow know that $FITX will pull through and get the facility build… but that’s just me.

My 2 cents.

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The SPY took a tumble after reaching new high but then bounced back to close higher for the week.

From the chart, it all looks good.  Today was a pause day with a bias to the upside.

$KNDI took out the $17 resistance and made new high.

Although price closed below $17, it opened the door for further $17.xx.  In other words, The resistance was one layer weakened.

Regardless, $KNDI closed strong for the week.

See how high the volume was for the week?  While some may focus on how many cars $KNDI might have sold so far, I don’t think this is what drive the price up, I think it is the “potential” of multiple cities adoption of $KNDI car-sharing (vending machine style) programs that will drive the price.  Come March earnings, I believe people will look for the clue on number of cities signing on in the program.   Just take a look at some of the biotech such as $CLDX and $ISIS, look at their market cap compared to the revenues.

$LRAD looked good so far.

Despite a rough day fighting off sellers, it ended the day neutral.  Now, $LRAD just needs to take out the resistance @ $2.24 to move higher.

$MZOR closed higher a bit but did took out the upper range of the consolidation during the day.

I believe $MZOR will continue to climb from here since the recent earnings result was all good on the revenues increase.  I see more and more surgeons and hospitals adopting this robotic device to provide better efficiency and accuracy in spinal and brain surgery.

$SEED bounced higher but gave back all gain before closing.

The good news is that price still stays above support for now.  I believe traders and investors alike will buy the support for the next leg up.

$SVA was a bit disappointing ’cause price closed negative after breaking out of the consolidating range.

Nevertheless, price is now settling right on the convergence of the 5 and 15 MA lines.  Sometimes, this is a good support here.  Let’s see if price will bounce next week.

$KGJI continued to head south below resistance.

Although I’m taking heat, it was small heat.  But still, it was money tied up unproductively.  It hasn’t really gone anywhere even when $NUGT went higher.  I guess I just have to wait for the next $KGJI earnings report to see any big move here- up or down.  I’m voting for up, of course.

Due to a mixed batch of ups and downs on my six stocks in my port, I ended up with a neutral day.  But my port had a strong week that ended in a new high.

Current holdings:

KNDI, LRAD, MZOR, SEED, KGJI, SVA and 5% cash.

From my other account:

$FITX collapse after breaking down below $0.08 that caused panic selling.

My only thought at that instant was “why didn’t I wait a few more days before adding?”.

See how the daily bar closed with a hammer candlestick?  This can mean a “possible” bottom.  But price needs to close above today high next week to confirm the bottom.

Oh well, by sticking to my discipline of not averaging down, I stayed put.  When I said I was done buying yesterday it meant that I was done scaling in.  Anything purchase after that against a downdraft is considered averaging down.  Thus, I did not buy more today.  Still long and strong and I believe the facility will be completed and the permit will be granted by Health Canada.  Yeap, that is my conviction, right or wrong.

My 2 cents.

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