Reason number 1: We are at 50% retracement from the low of Jan 2009 and the high of Sep 2012. See the blue horizontal line below in the $AAPL weekly chart.

Reason number 2: The length of the drop from the high of 03/25 to the low of 04/5 is equal to the length of the drop from the high of 4/11 to the low of 4/19 (today).  See the blue zig-zag line.

Reason number 3: We have a bullish piercing candlestick pattern in development today.  See the two candlesticks inside the circle.

Below is the primer for bullish piercing candlestick pattern:

Piercing Pattern

And for these three reasons, I’m comfortable to buy some $AAPL this morning.

My 2 cents.

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Yes, we will get a call from next week to find out if 4/5/2013 low will be a support from today down day.

Take a look at the daily $SPY chart below:

It looks like 4/5 low is holding the ground for now with one hour to go.  Regardless, we will know next week how it will play out.  Meanwhile, I’m not going to sit heavily in stock waiting for judgement call.  I’ve been downsizing some of my position this morning and my cash is now 60%.

There is really nothing for me to do but to relax and rest.  Sometimes, you need to let the market goes and give it time to “digest”.  And it will be much easier to relax if you adjust your portfolio to increase cash.  If you are still heavily invested, some of you are likely to be tense and worrisome which is understandable giving today continuing bear stance.  For those who have a hard time moving from stock to cash: try this exercise, think of $CASH as a stock.  So, you will sell stock $ABC to buy stock $CASH.  That may do the trick.

Be safe.

My 2 cents.

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Today confirms that yesterday Bullish Harami is not so bullish after all; instead today is a day to play defense.  The Three Inside Down is a candlestick pattern that points to a possible bearish stance.

Take a look at the daily $SPY chart below:

Now take a look at the primer on Three Inside Down below:

BEARISH THREE INSIDE DOWN Type: Reversal Relevance: Bearish Prior Trend: Bullish Reliability: High Confirmation: Suggested No. of Sticks: 3   Definition:             Get the highest rated stock from Americanbulls for this pattern >>>The Bearish Three Inside Down Pattern is another name for the Confirmed Bearish Harami Pattern. The third day confirms the bearish trend reversal.Recognition Criteria:1. Market is characterized by uptrend. 2. We see a Bearish Harami Pattern in the first two days. 3. We then see a black candlestick on the third day with a lower close than the second day. Explanation:The first two days of this three-day pattern is a Bearish Harami Pattern, and the third day confirms the reversal suggested by Bearish Harami Pattern since it is a black candlestick closing with a new low for the three days.Important Factors:The reliability of this pattern is very high, but still a confirmation in the form of a black candlestick with a lower close or a gap-down is suggested. *** At this point, a more cautious and defensive stance is warranted for those who are heavily long. I’m currently sitting on 47% cash. Be safe! My 2 cents.

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We have a really nice Bullish Harami under development in the daily $SPY chart.  And the nice thing about this is that the price action is now on top of the 2007 support.

Take a look at the chart below:

Did you notice that despite yesterday big down day, it hasn’t penetrated the up trendline on the chart.

Although market is up $126 point right now, I’m sensing quietness and calmness.  Thus, I haven’t been active at all today.

Below is some primer on Bullish Harami:

Source: click here

Bullish Harami

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Because I’m buying $PPC.  Thanks to the alert from Vertigo.

The fundamental makes sense, China is killing a lot of chicken due to the bird flu crisis.  We may have shortage of chicken from China and $PPC may run because of this.

Take a look at the weekly $PPC chart below.

As you can see, price action may be taking out the current consolidation to the upside.

My 2 cents

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I’m going to chase the $DUST because I believe it is going to take out the top set in May 2012.  If gold price is being clobbered, the gold miners will be decimated.

Take a look at the weekly $DUST chart.  My sense is that last May high will be taken out by next week.  Perhaps, gold is no longer a safe haven because people are coming back to buy stocks as you can see we have made new high on the DOW.

Come to think of it, we may even take out last year high today… there are still 35 minutes for this to happen.

My 2 cents.

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I’ve been managing $BCRX since last week after getting the alert from RaginCajun.  I elected to forgo the quick profit from the gap up the next day after my entry because I sensed that this one could be a runner.  Thus, I’ve bought and sold shares of $BCRX to manage my risk so I don’t get slaughtered along the way.   I was down to 25% of original position from yesterday and now I’m back to 110% due to the positive price action this morning.

The chart below clear shows a bounce.

Time will tell if this will become a runner like I sense it is.

My 2 cents

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I’ve been watching $DNDN on and off and today the quantum computer in my head is alerting me that we may be seeing a bottom here.

Take a look at the daily chart below:

Did you see the low from earlier this week landed right on the 78.6% Fib retracement?  Did you also see how the two momentum indicators below both turn up and how the price action today is reflecting a “rounding up” pattern?

Price action today also crossed over the 5 min moving average line.  All of this give me a level of comfort to buy a starter position.

Look at the weekly chart below:

Again, the weekly chart is just to show you the prior landscape.  If $DNDN is bottoming out here, we are in the process of starting a 3rd (impulse) wave of Elliot Wave Pattern.  FYI, the 3rd wave, if it is one, is usually the longest wave of the 5 waves pattern…

My 2 cents.

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Yesterday, I posted a thesis on possible breakout of $CERS within a couple of days and speculated accordingly.  It is my duty to inform you that the breakout occurs today.

Yippee Yapa doo!

Ok, now that I got that wave of excitement out of the way, let’s look at the charts a little bit more:

Below is the daily $CERS chart:

 

The breakout is clean and solid.  Notice that it also took out the upper range of the Bollinger band.  That usually mean the bullish force is tremendous here.

Below is the weekly $CERS chart.  This chart is just to show you the possible potential giving the prior landscape.

 

Per my trading strategy, I added to $CERS today.

My 2 cents

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By buying the breakout of a double-top (Mar 2012 and Mar 2013) of $CERS.

Take a look at the $CERS weekly chart below:

I had traded and made money on $CERS years ago and recently missed the run from low $3 to current price.  Interesting thing was that when it was trading at low $3, my mind was saying “Hey, you better get ready for this one!”.  But I ignored that inner voice by forgetting to follow up with it.  But now that it was trading at critical breakout point, I cannot ignore it any longer.

Below is the Yahoo-Finance Profile description of the company if you are interested:

Business Summary
Cerus Corporation, together with its subsidiary, Cerus Europe B.V., operates as a biomedical products company that focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety. The company’s INTERCEPT Blood System is based on its proprietary technology for controlling biological replication and is designed to target and inactivate blood-borne pathogens, such as viruses, bacteria, and parasites, as well as potentially harmful white blood cells, while preserving the therapeutic properties of platelet, plasma, and red blood cell transfusion products. Its INTERCEPT Blood System for platelets is designed to inactivate blood-borne pathogens in platelets donated for transfusion; and INTERCEPT Blood System for plasma is designed to inactivate blood-borne pathogens in plasma donated for transfusion. The company is also developing INTERCEPT Blood System for red blood cells, which is designed to inactivate blood-borne pathogens in red blood cells donated for transfusion. It markets its platelet and plasma systems through its direct sales force and distributors primarily in Europe, the Commonwealth of Independent States, and the Middle East. The company has collaboration agreements with Baxter International, Inc. for the development and commercialization of the INTERCEPT Blood System. Cerus Corporation was founded in 1991 and is headquartered in Concord, California.

My 2 cents.

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