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Tag Archives: Trading

$PACB riding the coattails of $LIFE takeover story

Breaking news: Private Equity Group Reportedly Looking At Life Technologies

All of a sudden, DNA-sequencing or Gene-sequencing is catching the limelight.  Why not?  If the technology can contribute to our biological science to improve our  quality of life, it is time to celebrate!

Look at the daily chart below:


We are seeing a potential double-breakout today if price action can close over $2.39 today.  I like to see price action makes a run for the previous high of $3.25.

$LIFE is a $10.5 billion market cap company, if $PACB can compete, even in a small way, its value is way undervalued right now for the potential since this is essentially still a small-cap company with a lot of room to grow.

My 2 cents.

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We’ve got a runner! $DCTH

I like to see $DCTH fills the gap that was left unfilled since October of last year.  Take a look at the $DCTH daily chart below:


So far, $THLD is the only bio-stock that I’ve to cut; otherwise, bio-stock rules today; at least for me.  With biotech, you need to be either quick feet or have iron-fist confidence; in other words, it is highly volatile.

My 2 cents.

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SPY sits on the wall… will it fall off?

Take a look at how today price action has ended the day.  Isn’t it interesting that the daily bar appears to “sit” on the wall?  Or should I say “price action” is sitting on the support?


Look at the hourly bar:


Same deal.

Let’s see if price action will take off from here tomorrow or fall off the wall like Humpty Dumpty…

On a side note, I’m now loaded up on Biotech stocks. 11 of my 14 positions are biotech related.  My current position included LRAD, AMRN, USU, SZYM, DCTH, CUR, ZIOP, ATHX, GLUU, PACB, THLD, DARA, DNDN, RPTP, and 25% cash.

Trade well!

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Quick! ABC correction or 3rd wave of Elliot Wave pattern?

Hmm… I choose the latter-  3rd wave of the Elliot Wave pattern.  Take a look at the $RPTP daily chart below:


Since this is a biotech company, the 3rd wave will be quite a sight to see IF it is the 3rd wave.  My target for the 3rd wave is $6.


it could be an ABC correction which, in this case, will probably penetrate the resistance at $5.29 before heading back down.

Roll the dice, close your eyes, and cross your finger… Just kidding, this is not how you trade stock!

I will put a stop below the B wave if this is an ABC correction pattern.

My 2 cents.

Yeap, I bought a starter position on $RPTP.  If price action takes out resistance at $5.29, I will add more.

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Banging on the head… not quite yet!

Let’s start with the SPY monthly chart:


Did you see how the top of the bar was touching the first wall?  Or should I say the head of the bar was banging on the wall?

Here is the SPY weekly chart:


Clearly current week bar is heading straight to the first wall.  It stops short of penetrating the wall on the close.  Close, but no cigar; at least, not today.

Now look at the SPY daily chart:


Oh, oh!  You can see clearly that price has penetrated the first wall but it has also failed to close above the wall.

Here comes the SPY hourly chart:


You could see price action was deflected from the wall.

Tomorrow will be interesting.  Will price continue upward, penetrate the first wall, and close above it by end-of-day?

Don’t forget to bring pop corn in the morning…

Trade well!

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Is 2013 the Year of Stem Cells?

I’m thinking it is.

Just look at the headlines:

After Successful ALS Phase I, Neuralstem Branches Out  ($CUR)

Neuralstem Grants Licenses For Central Nervous System Therapy Surgical Devices To Cedars-Sinai Medical Center ($CUR)

Rejuvenated Regenerative Medicine: Stem Cells and Athersys on the Rise ($ATHX)

Athersys’ MultiStem Platform Tempts Big Pharma And Investors ($ATHX)

Meanwhile, $ATHX daily chart shows a cup & handle pattern with one giant handle:


Is this a good sign with a big handle?  Beat me!  Nevertheless, the chart does look like it has a lot of support in the $1.50 area going back to last year.

$CUR daily chart, on the other hand, is showing a come-back V shape pattern:


I like to see price action breakout of the downtrend line at the $1.20 area to show that it means business.

Either way, I’m betting my 2 cents that 2013 may be a good year for Stem Cells.  And I’m rooting for $CUR to have a successful ALS phase II trial.  It will be a milestone for those who suffers from the disease.

I currently own both $CUR and $ATHX.

My 2 cents.

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A Low risk $AAPL long trade

I don’t know about you, but I see a support here at this level.  Take a look at the weekly chart below:


The way I see this, I can place my stop below yesterday low for a low risk trade on the long side.  This is a low risk “catch the falling knife” trade.

My 2 cents.

My twitter feed does not work here; you can follow me @tradingmy2cents at twitter if you are interested.  Thanks.

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The evolution of a dime store blogger

Ok, in my early stage of blogging, I was as ignorant as a clueless ant walking blindly in circle without a sense of the surrounding social media phenomenon.  Like a baby-face farm boy who was oblivious to the metropolitan world of communication, I logged in my trades under the comment area of my blog post while others are sharing their trades and quick thoughts on the super-highway of twitter.

“If you’re not using Twitter to promote your work, you’re a f*** idiot” The Fly proclaimed in one of his post.

Holy Jubilee! Time to get off my lazy ass and learn to ride the twitter highway.

Slowly and in baby step, I dipped my toe in and began to walk on the twitter highway.

And a lot of walking I did; so much so that I ignored my blog for the easy twitter updates.

Talking about walking, if The Fly has thought of “Walk the Dog” while reviewing my blog “followingpriceaction.com”, something is not right.  I suspected it must be the word “following”.  Yes, it must be it; dogs always follow their masters. (Hint: Price Action is our master in the world of trading.) Originally, I chose the blog name to remind myself to follow the price action; but then, thanks to The Fly’s reaction, a reminder doesn’t necessary make a good blog title.

In some way, I’m glad of The Fly’s brutal honesty, Followingpriceaction does sound limited in scope.  So, I enlisted the help of my family members and came up with one we agreed on:


I like it.

Think about it, it doesn’t matter what technical tools or fundamental stories I am using to back up my decision on a trade, it is essentially my 2 cents in the end.  All I am doing is to build a supporting structure using chart patterns, momentum indicators, fundamental story, etc. to give me confidence to execute a trading decision.

An interpretation of a chart is nothing more than my 2 cents in attempting to forecast the short or long term direction.

My belief in the fundamental story of a stock is nothing more than my 2 cents in attempting to form a vision of the future.

Nothing is ever guaranteed in life and everything has its own risk; but it all starts with our taking a position or direction based on our 2 cents.

History has shown that while it is in our nature to take risk, it can be catastrophic to take risk for granted.  Our 2 cents can only takes us as far as we are correct (aka being right); but to ignore the risk (aka the cost of being wrong) will be foolhardy.  This is why we must always take precaution to cut our losses when our 2 cents turned out to be worthless (aka being wrong).

Although followingpriceaction.com started off as a reminder for myself, tradingmytwocents.com also has a reminder baked in- because it is ONLY my 2 cents, there is no need to prove how right I am.  If I’m wrong, I can throw my two cents away.  In other words, don’t pay top dollars to keep your two cents and learn to cut your losses quickly folk!

TradingMyTwoCents.com is my next step in transforming myself as a blogger.

Let’s see where it goes.

I’m going to try again for the ibankcoin interim blogger contest if it is still on.  If I’m ready, I’ll win a spot; if I’m not ready, then I’m simply not ready.  After all, it is only my 2 cents anyway.

Thanks for listening.

ps. I do not know where to go to change my twitter username in this blog; however, I’ve send an email to [email protected] to ask them to change my twitter username from @followtheprice to @tradingmy2cents.


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DCTH is breaking out.

I cut my $DCTH position last Friday morning but price action showed strong closing by end-of-day.  This morning, $DCTH gapped up so I decided to jump back in giving that Friday up-bar was a solid break-out from a symmetrical triangle.

I like the fact that today price-action took out the highs of Feb 5th, 2012 and Nov 7th, 2011.

Take a look at the daily $DCTH chart below:


There are profit-taking going on now but the momentum still linger as long as price action can stay above the highs of Nov & Feb.

I’ll be watching this one carefully so as not to give back too much profit.

Trade well!

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Hazard at the top- a spinning top near major resistance

What we have here is a spinning top candlestick pattern for the month of February.  Normally, a spinning top candlestick pattern is just like any other candlestick reversal pattern, it simply offers a possible reversal signal. Nothing is guaranteed and it is merely a precaution.

However, when you have a “monthly” spinning top candlestick pattern at the TOP of an uptrend near the walls of two long-term resistance (formed in year 2000 and 2007), you HAVE to take precaution.  You have to acknowledge that there  may be a greater force in play here.  A force that has soundly defeated the bull in year 2000 & 2007.

The month of March is now the key month to watch.  It may dictate the direction for the rest of the year.  A down month in March may confirm the February spinning top candlestick pattern as a bona-fide reversal signal.  In other words, the walls of resistance are too formidable to overcome.

Look at the SPY monthly chart below:


Did you see the tiny spinning top candlestick bar formed in February?

I will be very mindful of the possibility going into March.  Perhaps a little less tolerance  in  giving the trades more times to establish its uptrend.  Come to think of it, I never have much tolerance with my swing trades anyway except for my position trades.  I’ll be keeping an eyes for ETF such as FAZ, SKF, etc.

Just my 2 cents anyway.

Trade Well!

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