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Monthly Archives: November 2013

11-29-2013 Trading Journal

Market opened higher from an alcohol induced rally but fell down by closing bell due to passing out…

$CUR broke out of the cup & handle resistance line and I bought a mid-size position.


Price did not close above the resistance line as shown in the daily chart above; however, we still have a higher high and a higher low.  Let’s see if next week can continue the push up.  If not, I’ll cut this one for small losses.

$TSLA opened higher and I added another layer around $129.xx.


Price could not hold above $129.xx and fell down along with the market at the close.  I moved my GTC hard stop to breakeven during the day. I may move the hard stop to below the daily 5 MA line to give it more room to breath.

$INO continued to struggle to stay above $2.12 so I decided to sell the rest of my shares to take my small losses.


I was expecting a spike up this week above $2.20 and it didn’t happen.  Moving on.

$KGJI continued to struggle to get back to $1.80 but was down slightly for the day.


I’m still holding all my shares.  Notice that the daily 5 MA line is still pointing up.

$CERS had a nice rally during the day but gave back the intra-day gain to follow the drunken market when it passed-out.


Notice that price penetrated the downtrend line today albeit it still closed below it.  I like to see it go back above the line next week.

$XONE handles itself ok today.


It closed only slightly down.  It still has a higher high and a higher low today though.

$CRTO won the “come-back” reward when it jumped back to positive territory after being down all day.


I like the fact that price closed above the daily 5 MA line.

$RBCN made me proud (and I’m sure The Fly as well since this is his pick) ’cause it closed above the 5 and 15 MA lines today.


There is still the 79 SMA above that need to be crossed over before we can consider it a full-blown uptrend.

$NUGT’s bounce today might confirm a possible bottom here.


Will it continue to head up?  Will 2014 be the year of $NUGT?  Provided that I’m not stopped out b/w now and end of the year, I may have a shot of riding this one back to $100 roll…  Pardon me for getting ahead of myself.  Btw, I moved my GTC hard stop to breakeven.

Now, the drum roll….  $LRAD made the day today!


Above is the daily chart and below is the weekly chart.


By looking at the monthly chart below; I can see that we are breaking out of a two-years sleeping pattern.  I like to see the monthly 89 XMA taken out by year-end.


Perhaps by early next year, we will take out the next target of $3.36 which was the previous high at July 2011.

Since $LRAD is my largest position, needless to say my portfolio went up very nicely today.

Current holdings:


My 2 cents.

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11-27-2013 Trading Journal

The market was like a kid jumping on a Pogo stick today.  It bounced up, hit the ground, and then bounced once more before the market closed.

$INO opened higher and I naturally added.  But the bounced went out of air and began to meandering around.


Needless to day, I sold 50% of the position to reduce risk.  If there is no strength behind the bounce, it makes no sense to take on increased risk especially when playing for the momentum in bio-tech.

$CCJ and $URA was falling after opening so I sold $URA to take small losses even though by end of day, $URA came back positive with a green bar.


At the 5m chart shows, price tanked right at the open.  Since $URA was only a small starter position, I was only interested if price could keep going up after I bought; otherwise, I would have to keep an eye on it.  Thus I sold for small losses to take it off my watch list.

$RBCN, The Fly’s pick, had a nice long tail green bar yesterday despite being a down day.  This tell me that buyers were able to fight its way back to the top of the daily range.  When today price action took out yesterday high, it was a buy signal.  It so happened that when yesterday high was taken out, it also took out the upper opening range; thus, I bought a decent size position.


Price is now testing the resistances created by congruence of the 89 XMA, 5 & 15 MA lines.  Price needs to take out this resistance to move forward.

Seeing that $NUGT stopped going lower on the 3rd day from the last historical low, I decided to play “catch-the-bottom” on $NUGT.  This is how I decide when to play this game.  $NUGT had been going down with a lower low for the last eight day.  Allthough there were days without a lower low; the following day continued with a lower low.  But today, price did not gapped down after yesterday pause (of a lower low); instead it opened higher.  Giving the possibility that we might have a 3rd day without a lower low, I took the chance to buy with a hard stop below the historical low which was two days ago.


There is no guarantee that I’m catching the bottom here, it is just that today buy-in offer a low risk trade.  That is all.

I bought a starter position on $TSLA today solely based on the technical bounce off the 50% retracement from the historical high and low of this stock.


The weekly chart above shows price bounces off the 50% dashed-line.


The above daily chart shows how yesterday daily bar bounced off the 50% retracement line.  Since today price did not continue to head lower but instead opened higher, this confirmed the 50% retracement bounce had leg so I bought in for the ride.

$KNDI rallied nicely in mid-day so I added more.


Take a look at the nice rally on the 5m chart above.

$KGJI finally had a correction day.


Price found support at the daily 5 MA line.

$XONE continued to bounce.


This gives me comfort that I may not need to take too much heat going forward.  Notice that price closed above the daily 5 MA line.

$CERS was able to maintain its price level today without giving back the gain from yesterday.

Despite $KGJI down day and the neutrality of $LRAD, my portfolio gained today thanks to $KNDI, $XONE.and the smaller gains from the rest of the team.

Current holdings:


My 2 cents.

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11-26-2013 Trading Journal

Market was dancing like a happy child following the uphill path until it stepped on a banana peel and fell back all the way to the starting gate.

$CRTO opened higher and I bought a bit more to bring my position back to the original full size.


While the action and volume were small, price continued to stay above the 5 & 15 MA lines.

$WG started off the gate falling into the abyss so I had no choice but to cut the trade.


Since it was only a starter position, the losses were small.  I’m still debating whether to include $WG as a long-term hold.  I like to see how price action close for the year before deciding.

After looking at the $INO daily chart, I’m going to take a chance of it breaking out of the cup and handle pattern.


The handle seems to appear on the left hand side though on the chart.  Nevertheless, price bounced off the daily 5 MA line and is now settled above all the MA lines.  This should provide some support for a breakout if there is one.

$CERS made a fantastic recovery today after yesterday correction.


I guess I’m being rewarded for my conviction. Price bounced right off the daily 5 MA line which, to me, is a very bullish sign since the 5 MA support is generally not as strong as the longer MA siblings.  Thus, bouncing off a light-weight MA is considered very bullish in my book.

While $XONE was still under water slightly today, I took comfort that it was still trading above the support floor around $50.6x.


Let’s see if it can bounce up tomorrow.

$KGJI is still holding its ground above $1.80.


I like the fact that price is now above the 15 MA line and the 5 MA is hooking up.

$LRAD continued to struggle to maintain high ground.


There was a very large ask early in the morning and I was glad to see it get gobbled up quickly.  This tell me that the underlying strength is there since buyers are out there waiting for a good deal instead of going in to drive the price up.

Thanks to $CERS 180 degree recovery, my portfolio was up today.

Current holdings:


My 2 cents.

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11-25-2013 Trading Journal

Market opened positive , struggled all day to stay afloat; but dived under the sea by the close.

Over the weekend, I decided to get back on the 3-D printing sector and had chosen $XONE to be the one since price was reasonable at around $53.xx level.  $XONE opened higher and that was a good sign for me since it followed the bouncing path.  I managed to buy in at $54.xx average price and price proceeded to head to the high of $55.49.  Unfortunately, price could not hold and proceeded to collapse to take out not only Friday low but the lows of the last three days.  However, if you look at the daily chart below, there is a support floor around $50.6x which price bounced off from today low.


I didn’t use stop or even tried to cut my losses because my intention is to buy a 3-D stock and hold.  I had bought $SSYS around $92.xx after their secondary offering but I was shaken out during one of those mini-corrections and I missed the boat ever since.  $SSYS is now trading around $118.  So this time, I’m going to take some heat and hold.  I believe in the long run, $XONE will trade over $100.00.  It may even happen in 2014.

Seeing that I missed $CCJ, I decided to buy $URA instead to catch the uranium bounce-back.


There is still a lot of work for uranium to change its current trend back to up.  As you can see on the chart, the 79 & 89 MA lines are still sloping down.

Seeing that $WG had a spike up at the open, I decided to buy a starter position to see if it is bottoming at this level.


Price closed positive so there is some possibility of a bottom.  I’ll add more if price can bounce tomorrow.

$CRTO gapped up and I like the fact the price is now higher than 5 & 15 MA lines.  Thus, I added back shares I sold last week during the sell-off.


From the chart, price looks like it can continue to bounce higher.

$KGJI continued to bounce higher and I’m back in the black with this trade.


I like to see price takes out the 15 MA line tomorrow to show more strength in the rally.  This will also hook the 5 MA line back to the upside.  Regardless, I’m holding this one long-term as well.  Btw, my holding $XONE despite its being in the red after entering the trade today is simply because I share the same conviction I’ve with $KGJI- that these stocks will head much higher in 2014.

My conviction also applies to $CERS despite the fact that price collapsed after reaching intra-day high of $6.77.


Did you see how price bounced off the 5 MA line here?

$LRAD continued to correct despite announcement of more sales.


Price is still around the support line so there is still a chance that the weekly bar can still turn green by the end of the week.

At this point, I’m working on building a portfolio where I can just sit and wait for a year or two without trading in-and-out of my position.  Thus, I’m willing to take some heat (either in red or paper gain give-back) for this purpose providing that there is no drastic negative change in fundamental of the stocks.  But for now, I may still make change in the allocation of fund to each stock; so there may still be some in -and-out in reducing and increasing size.

Due to $LRAD being the largest position, my portfolio took some hit today.

Current holdings:


My 2 cents.

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11-22-2013 Trading Journal

Market continued to head higher today as if those corrections were just a hiccup. Correction? What correction?

First, I got slapped again on my “obsession” with $AMRN.  This obsession directed me to choose $AMRN over $GALE to put my available cash to use.  I was thinking like $GALE had been moving up for too long and $AMRN had been pushed down too much, time for correction and time for bounce.  Hence my decision to buy $AMRN yesterday.  In hindsight, the thinking (or perception) “should be” $GALE had strong momentum and $AMRN had weak price action, time to buy strength and leave the weak alone.  Notice that I used the “no no” words of “should be”.  However, for my future learning sake, I need to remember this lesson.

On the bright side, when $AMRN bounced up from the gapped down, I was sensible enough to dump the position to take advantage of the bounce to reduce my initial gapped down loss by half.  I may be obsessed but I still have enough sense to know that if FDA has refused a meeting to $AMRN on the high level, the show is over.  There is no “save face” acceptance on Dec 20th with a yes vote.  If there is, why do $AMRN announces that “it planned to pursue the appeal“?

Well, despite my obsession with $AMRN, I know better than to pin my portfolio on one stock.

$PXD was trading down so I took the opportunity to buy some back for the bounce.  It did bounce a couple of time from the initial intra-day low and you could see on the chart that each bounce up became weaker and weaker and when it finally dropped below the intra-day low, I was stopped out for losses.


As you can see on the 5m chart, price then bounced back with no sign of letting up.  And this time, I wasn’t in it ’cause I could not buy my shares back due to the three day settlement tying up my money once again.  I had allocated money for today bounce on $PXD and the trade took me out; so I was out.  Although I missed the bounce back, as far as I was concerned, I had followed my trade management to the teeth so I just moved on.  Missing trades are all part of the game especially when I’ve opted out of margin account.  You may ask why I don’t get a margin account anyway for situation like today.  Don’t forget that it is only in hindsight that we know $PXD  has bounced; but that doesn’t mean all stocks will bounce after I am stopped out.  Having a margin account will only allow me to over-trade and make stupid trade when I should be walking away.  Literally, the cash account is my circuit breaker.

I continued to add to $CERS when price kept on moving up.


Chart looked good since price had taken out the pivot high of Nov 4th.

I also bought $KNDI to rebuild my position.


From the chart, price is now trading on a flat line instead of a continued downtrend.  Basically, it is consolidating for the next big move.  Giving the fundamental story regarding EV in China and its pollution issue, I can only speculate that it “has” to go up.  At least, both the 79 & 89 MA lines are still in a slightly upward angle.

While $LRAD was unable to maintain above $2 as I had predicted, I still have strong conviction for its long-term upside momentum.  I actually added more in the $1.9x price level.


The weekly chart above shows that price has broken out of the Cup & Handle pattern with relative higher volume.  Now, I just have to sit on my hand on this one and see if price can climb higher from here.

$KGJI bounced off the the 89 XMA as I had expected.  It was a good thing I added more two days ago when it was near the 89 XMA.


Today price action further confirms the magical quality of these two 79 & 89 MA lines.  Now,you know why when price corrects to these level, I’ve no qualm buying for the bounce.  Yes, it doesn’t always bounce off these levels but the risk/reward ratio is FANTASTIC!  You can’t argue with statistic.  I’ve seen enough (and you too if you have been following my blog) of these bounces that I know the odd is good for me to buy these bounces as long as I apply risk management to these trades.  I was tempted to add more this morning but giving the limited available cash that was released today, I decided to buy other stocks such as $GALE.

I bought $GALE in the morning when it took out the upper opening range but decided to take profit when it was near $4.  At this level, I’m very mindful about correction on this one.  Thus, $GALE was a successful day-trade today.

I also bought some $WG for the bounce but was stopped out for small losses.

Despite my bad turn on $AMRN trade, my portfolio was up nicely thanks to $LRAD, $KGJI, $CERS.

Current holdings:

LRAD, CERS, KNDI, KGJI, CRTO and 35% cash.

My 2 cents.

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11-21-2013 Trading Journal

Talking about 180 degree turn, the market did just that today and shot up in the opposite direction of yesterday move.

Meanwhile, my high cash position was tied up in the three-day settlements and I only had limited cash to work with.  Since I like to move in heavy on one stock instead of spreading it thin around, I had to make a decision to buy either $GALE or $AMRN.  Well, you guessed it, I chose $AMRN and it did nothing for me today.  Hindsightwise, $GALE would have been a better choice…

However, the play is not over yet, if $AMRN jumps tomorrow for whatever reason, the game is still on.  If I get some fund release tomorrow, I’ll look to buy back some $GALE and $KNDI.  Maybe some $PXD and $WG if the market sentiment is still up.

But all is not lost today; $KGJI bounced some today which was a good thing ’cause I added more yesterday.  I may continue to add if price continues to head up from here.  I plan to build this one up to a larger position than it is now simply because I believe this stock is really really undervalued.  It will be another “LRAD” type of long-term hold.

Talking about $LRAD, this one really makes my day today.  Not only price was up today by almost 10%; earnings news was even better than I thought. After reading the earnings transcript, I couldn’t help but salivated even more!

After hour price is already over  $2.00+, I expect to see this one stays above $2.00 by closing bell tomorrow.

Take a look at the monthly chart below:


Today close right at the resistance from prior year high at $1.78 from early 2012; after hour price action of $2.00+ already broke out of the resistance.  If momentum continues, it will take out the 89 XMA line at the $2.20 area.  Once this line is taking out, the upward trend will continue on for the next target at $3.30 area.  I’m holding all my shares for awhile here.  If you read the Q&A on the earnings transcript, you will understand why I’m holding this one for long-haul.  This baby is going to grow big soon!

Despite a high cash balance, my portfolio was up very nicely (more than made up for yesterday loss) thanks to $LRAD which happens to be the largest position in my portfolio.

Current holdings:

LRAD, KGJI, CERS, AMRN, CRTO and 48% cash.

My 2 cents.

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11-20-2013 Trading Journal

Market opened higher and headed to the sky; then after awhile, it changed its mind and dive into the sea.

At first, I looked at $GALE since it was trading above $3.  Seeing that it was quite persistent in staying above $3, I decided to add more.  Price headed higher after I added and when it finally dropped a big red bar, I sold 50% to lock in profit.  Later in the day, I sold the rest when price penetrated the 79 & 89 MA lines in the 5m chart.


If price bounces higher tomorrow, I may buy back some shares.

I had been eyeing $INO and when price popped based on news, I decided to buy some at low $2.1x.


However, when price could not hold above the 79 & 89 MA lines, I bailed as well to take my small losses.

$AMRN was going roller-coaster today.  After the falling off the initial run-up to $2, I sold some to lock in profit.  Price then headed higher again to get $2.  Again, it could not hold $2 and fell back quickly.  Not only that, it fell below yesterday close and proceeded to head further down.  I was tempted to sell the rest.


And when price finally bounced back up, I took the opportunity to sell the rest of my position to lock in profit.  I sold because the general market was very negative.  Today daily bar looked like a doji.  Doji can potentially become a topping bar…

$WG kinda fooled me today.  At first, it traded higher to $9 so I added a bit more looking for a strong bounce.


Price tried to bounce but failed to reach the intra-day previous high and instead dropped back down to yesterday closing price..  I decided to sell some to reduce risk.  By the end of the closing bell, price dropped below sea level and I decided to sell the rest due to overall general market down turn.

$RBCN was quite disappointing.  When it couldn’t hold yesterday closing price, I sold some to reduce risk.  But when it dropped another layer, I sold the rest at $10.2x to cut loses and move on.


Good thing I sold since price proceeded to drop below $10 soon after.

$PXD was trading well in the morning but quickly gave back all gain.  Later in the day, it began to trade lower.  Seeing that price was again back to the lower end of the ledge I decided to bail out my entire position to cut losses.


As you can see in the daily bar chart, tomorrow can be critical.  Either price will bounce or it will drop further down since price is already trading below the 79 & 89 MA lines.  All supports I can see are no longer there.  Thus, to play safe and reduce risk, I sold to sit back to see what will happen.

I didn’t like the red bar in $KNDI daily chart and the fact that price could not stay above the daily 5 MA line.


Therefore, I sold my entire position as well to stand back to see where price will go.

$KGJI dropped the most and price is now touching the $89 XMA support line.  I feel that price level here was in contradiction to fundamental story behind it.  The company sales were growing quarter after quarter and yet price would not reflect the the market value.  Of course, it is purely my opinion.  Instead of bailing out like other position, I decided to add more here at this 89 MA support level.


Remember, I’ve sold most of other positions to reduce risk to balance out this particular high risk trade.

I sold some $CRTO also to reduce risk.

Giving $KGJI 10% drop today along with smaller drop in other positions, my portfolio took a hit.

Current holdings:

LRAD, KGJI, CERS, CRTO and 58% cash.

My 2 cents

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11-19-2013 Trading Journal

The market (SP500) gapped down a bit and bounced around the opening range before heading lower.

Seeing that price actually tried to climb back up, I decided to do some bargain shopping.

I watched $PXD headed lower after the open.  There were two supports I was watching, the daily 89 XMA and the previous pivot low at $181.78 established on Nov 12th.   The 89 XMA was penetrated not long after the open so I watched to see if it would get to the $181.78 area.  While watching, I placed a limit buy at $182.00.  Price broke below $182 and I got filled.  From this point on, I was ready to get out of the recent add if price continued the waterfall action.  I was expecting a bounce.  It did.  Btw, it so happened that the $181.78 low was right around the S1 Pivot Point calculation @ $182.113.  See the 5m chart below:


When price bounced off the S1 support, I added another layer to my position.  As price continued higher, I added more at $184.xx.  Then I stopped and let it ride.  Well, as you can see on the chart, it did not continue to rise but began to correct some more.  At this point, I decided to put a hard stop below the intra-day low to cut losses on the three layers I added today.  I wasn’t stopped out at day close..

$WG was disappointing since it failed to hold on to the bounce from the late morning.


When price began to bounce from $9 the 2nd time, I added back the shares I sold yesterday.  Unfortunately, price could not hold and did a waterfall price action.  I figured I would take the heat all the way to the S1 Pivot Point calc @ $8.84; but then I got distracted and found price turned further down below that at closing time.  I will see how price action behave tomorrow before deciding to bail or not.

The reason I bought back $WG I sold yesterday despite my concern was because price action actually bounce off the daily 89 XMA and 5 MA lines.  I was expecting a good bounce.


What I failed to do was to put a hard stop below these two support lines.

When I looked at one of The Fly’s pick, $RBCN looked like it was getting ready to break out of a cup and handle pattern.  The operative word was “potential” since it had not break out of anything yet.


I like the fact that price traded around the 79 SMA and the 5 MA lines.  with the 89 XMA and the 15 SMA below the current trading prices.  If price cannot rally the next few days, I may have to consider cutting my losses soon.

I also like another one of The Fly’s pick- $CRTO.  I like the fundamental story behind it:

Criteo SA, together with its subsidiaries, operates as a technology company that enables e-commerce companies to leverage large volumes of granular data to engage and convert their customers. Its solutions include Criteo Engine consisting of prediction algorithms, which predict the probability and nature of a user’s engagement with a given advertisement; recommendation algorithms that create and tailor advertisements to specific user interest through modifying the advertisement’s creative content and presentation, and determining the specific products and services to include in the advertisement; software systems and processes; bidding engine for executing campaigns based on objectives set by the clients; dynamic creative optimization; and experimentation platform, an offline platform to enhance the prediction abilities of its models. The company also offers an integrated technology platform that enables comprehensive campaign management and execution, as well as includes a dashboard and a suite of software and services that automates key campaign processes; and access to advertising inventory. It serves companies in the online retail, classifieds, and travel segments.

From the chart, when price bounced off the daily 5 MA, I began to buy some.


I may just hold this one for long term.

I added back some $KNDI I sold yesterday in the morning and then had to endure the price dropped below $7 all afternoon.  I was just getting tired of buying in and out of this one so I, again, decided to take some heat on this one as well.  Well, guess I was saved in the last minute literally.


Can you see the last 5 min bar at closing bell.  ZOOM!  Closed above $7 for the day.  Just like that. Whew!

Was I glad I bought back the $AMRN I sold yesterday!  Price continued to head higher for the day.


Can you imagine what price will do IF FDA decides to offer $AMRN some rope to work with?  Perhaps a limited version of ANCHOR labeling…  Apparently, $AMRN CEO, Joe Z,. had bought 50,777 shares at the open market yesterday.  What does that mean?  Did he know something we don’t?  Well, if market likes it, I like it.

$KGJI was embarrassing today.  Price continued to head south.  What happened to the road show?  Did they get lost in the cities?


I’m still holding simply because their fundamental is good and I believe price will eventually catch up. I’ve seen this stock bounced back up very quickly after a down day so I’m not yet worried.

I bought a bit of $GALE back today and may add more tomorrow if price can maintain above $3.00

Despite corrections from $LRAD, $PXD, $KGJI, $WG,$RBCN,and $CRTO, my portfolio was down only slightly thanks to $AMRN.

Current holdings:


My 2 cents.

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11-18-2013 Trading Journal

Market was up in the morning, bounced around the sea level and then proceeded to submerge under water like it was a submarine.

What can I say?

I thought today would be a non-action day on my part and my portfolio would go up due to $KNDI and $LRAD upticks.  So, what did I do?  I decided to work on other projects instead of watching my portfolio closely.  About 40 minutes before market close, I thought to look at my portfolio to see how high it had increased.


Instead of seeing green, I saw red.

Whoa!  $PXD dropped over $10 buck from the high and my once profitable trade had turned into a sea of red ink.  This trade along was responsible for dragging my portfolio down.  Without hesitation, I sold 70% of my position to cut losses and reduce risk.  Nevermind that I sold close to the low of the day, I simply did not want to hold a large position with a momentum that was dropping heavily in the last hour.  Maybe it will bounce tomorrow and maybe not; but I will rather watch the action tomorrow with a lighter size.


The chart shows that the price action cut thru the daily 5 MA line and is now pointing down along with 15 MA.  It doesn’t lend comfort to see that even the 79 SMA is penetrated.  The only last support is the 89 XMA and the previous pivot low at $181.78.  Thus, I’m definitely OK to get out near the low of the day.  If I had been watching, I might have gotten out sooner but I couldn’t go back in time so it would be pointless to talk about “what if”.

In trading, manage your risk accordingly and your profit will take care of itself.  Abuse the risk and you can kiss your profit goodbye.

$KNDI was going great all day until the last hour also.  All the gain for the day was given back.


From the chart, while I’m looking for bounce, it is a bounce against an intermediate downtrend.  That is why I tend to be trigger happy to get out when price begins to exhibit waterfall action inside the bounce day.  Seeing my paper gain evaporated into thin air, I sold 2/3 of my position to lock onto some real gain.  While there seemed to be support at the daily 5 MA line, the long-tail candlestick bar is something I don’t like to see when it is going against my direction.  Better safe than sorry.

$WG did not follow thru with a higher green bar but instead gave me a red bar that dropped more than 50% of the previous day green bar.


The price action was telling me that the upside momentum was no longer the case.  It didn’t help that the 79 SMA was penetrated to the downside and the only support lines are the 89 XMA and the 5 MA lines.  Potentially, we may be looking at a bear flag if price continues the waterfall price action tomorrow.  Thus, I sold 60% of $WG today to take small losses.

$CERS looked the worst in the chart since price action was struggling to climb back above the 79 & 89 MA lines.


Today drop made it even further below these two lines.  Today closing price is getting dangerously close to the lower range of the recent consolidation.  If this ledge support is taking out tomorrow, it may go even further down. Thus, I unloaded 70% of my position to play safe.

Regardless of how the $KGJI chart looked like today, I’m holding it for the road-show.  $KGJI was struggling due to its being invisible.  Therefore, I’m holding this one for pure fundamental reason.  I like to see if the road-show can bring new awareness and fresh money to take it higher.

$LRAD is a long-term play and I’m not trading in and out of this one.

Due to its being another red bar today, I sold 1/3 of my $AMRN position today.

I meant to sell 50% of $GALE today but punched in the full size position in my sell order by mistake.  Instead of buying back the 50%, I decided to just let it go.

I came into this week 98% invested waiting for a healthy bounce.  Instead of a bounce, I got a last hour waterfall action that put cold water on the bounce.  This tell me that my expectation of a bounce may be too optimistic.  Giving this new information, I had no choice but to lighten up my portfolio by 46%.

Take a look at the daily SPY chart below:


You see how today red bar was right at the upper edge of the Bollinger band?  Whenever price corrects near the upper (or lower) Bollinger band, the odd of a correction is high.  This is another one of the reason why I’m quick to raise cash in the last 40 minutes of the trading day.

Obviously, $PXD along with some of my other positions had brought my portfolio down today.

Current holdings:


My 2 cents.

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11-15-2013 Trading Journal

Market opened with a hiccup, struggled a little to maintain balance, and then flew high to the sky.

$AMRN started off higher and by automatic instinct I added more.  While it could not maintain the high altitude from the opening high, it did close higher for the day.  Thus, I’m still holding all my shares.

$GALE traded down at the open and I watched for the bounce.  When price bounced back above the daily 5 MA line, I bought back some position. Once price climbed inside the opening range and headed higher, I added more.  Now I’m holding 80% of my original size.


Don’t you love that nice green bar with a long tail?

While there are no substantial news to back up the strong rally, I do not fight the force that feeds the rally.  If price does not drop as I’ve predicted, I’ll go back for the ride up.  The key here is to follow the price action and to watch for correction.  The second key is to find out if the correction is truly a correction or a change in trend.  You will never know until price action confirms later.  Thus, you will need all the technical tools to help you test the water.  And in $GALE case, the bounce off the 5 MA and the opening range were my “tools” to help me decide.  So far, it worked for me since I’m in the money at market close with my re-entered position.

Next, I decided it was time to get back on $WG.  I bought $WG not long ago and but bailed out with some profit before the 2nd quarter earnings report and missed the nice run afterward.  Seeing that the recent 3rd quarter earnings resulted in a sell-off, I took the opportunity to buy back to join the resurgence of the oil service sector.


$WG closed strong and I like the fact that it closed above the 79 & 89 MA lines.  I was correct to add more when price took out the opening range and prior days high.  Now, I like to see price takes out the 15 MA line next week.  I believe this $WG bounce has only just begun.

I was disappointed to see $KGJI after-hour rally was stillborn at the open.  Although there was brief rally when the morning conference came out in transcript, it was immediately sold back down to neutral.  I did not sell ’cause I wanted to wait to see if there will be a positive effect from the road-show next week.

Meanwhile, $KNDI was doing great.  It fought a tough battle to climb back to close above $7 after being pushed down several times during the day.


I like the fact that the daily 5 MA line has crossed over the 15 MA line.while both 79 & 89 MA lines are still heading up.

$PXD also fought a good battle to come back to close near yesterday close.


As far as I’m concerned, the upward bounce is still intact.  Now, I like to see the daily 15 MA taking out next week.

$LRAD also fought to close even for the day.


Yeap, the bounce is still good.  I like the fact that the daily 5 MA has crossed the 15 MA today.

$CERS was also able to close above the daily 5 MA and the 89 XMA.


I can see a bottom forming here.

Although $PXD and my small $AUDC position were down slightly today, my portfolio gained due to upticks from $KNDI, $WG, and $GALE.

Current holdings:


My 2 cents.

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