Don't pay dollar to keep 2 cents when wrong. Cut your losses quickly. Trade what you see, not what you think.
Joined Oct 26, 2011
719 Blog Posts

11-05-2013 Trading Journal

Market opened down big but recovered somewhat into the close but still down nevertheless.

The first thing I did was to check $AMRN to see if it would bounce from yesterday close.  It tried hard to bounce but failed inside half hour.  When price began to trade back to $1.60, I decided to unloaded all my shares for small losses from last re-entry.  I could feel a lot of pressure trying to push price below $1.60.  Not long after I got out, price took out the $1.60 support and proceeded to do a waterfall down to $1.50 support.  This stock reminded me of the CPA firm who audited Enron.  So many people wanted it to fail.  But $AMRN is far from dead.  It still has enough cash to pay off the loan and kill the Reduce-it trial.  It can become an operational entity to just sell the Marine indicator with Vascepa and start advocating off-label use to help people with high trig. just like GSK’s Lovaza.   $AMRN will probably stay in the dollar range until script numbers improved,.  If this get to a dollar range, I may pick up some again for the bounce.  But for now, I’m flat except for some March $5 option I picked up after the AdCom no vote which I will continue to hold.

$GALE started off the gate like gangbusters.  I immediately added more since price took out the consolidation range of the last three weeks.  Take a look at the daily chart below:


Price not only took out the high of the last three weeks but the upper band of the Bollinger band.  It also put itself back on top of the uptrend line.  The 5 MA line is now pointing up and converging with the 15 MA line.  Both indicators below are also pointing up.  From the chart point-of-view, everything points to higher price ahead.  For those who looks at volume, it has higher volume day today as well.  Thus, I was glad I added more today.  $GALE is now my 3rd largest position in the portfolio.

I also added to $KGJI today (although I forgot to log it in my Twitter tweet).  Take a look at the daily chart below:


I’m seeing that price is coiling for a bounce.  Everything about the chart is also pointing upward.  If it wasn’t for the down general market, I could see $KGJI trading higher today.  The good news is that the 5 MA has now converged with the 15 MA on the upside instead of continuing pointing south.  Fundamentally speaking, Kingold Jewelry is so confident of their sales growth that they are planning to build a “Jewelry City” in Central China.  If they succeed in this front, $KGJI may become a significant force in the gold merchant business in the near future.

Next, I initiated a new position in $PXD.  Fundamentally speaking, here is an excerpt from this link that I like,

“Pioneer Natural Resources (NYSE: PXD  ) is exiting its Alaskan oil operations and it’s taking a loss to do so. The company simply sees better opportunities in Texas. The fact that it’s sitting on what it believes to be the world’s second largest oil field certainly doesn’t hurt.”

How can you not be bullish based on this simple fact? Although I’m late to the party, I only bought a starter position to sit on. Let’s see if it will continue its upward momentum from here.

Take a look at the chart below:


Although we had a red candlestick bar today, it is still showing a higher high and a higher low. Both indicators below are still pointing up. And the overall trend is still up. Can you believe that the possible world’s second largest oil field is worth only 29.14 billion market cap as of today closing price?  Hello?

$CERS was a bit disappointed today ’cause price fell below the 5 and 15 MA lines.  Even worse is that both MA lines are pointing downward.


However, the saving grace is that both indicators below are still pointing up.  I’ll continue to hold.

$KNDI could not follow-thru with a higher high today from yesterday nice bounce.  However, price still stays above the 5 MA line albeit both MAs are pointing downward.


The good news is that price is still above the 79 & 89 MA lines and both the indicators below are also pointing up.  Yeap, I’ll continue to hold.

$TINY did not do much today but struggling to stay above the uptrend line.


The next few days will determine if it can hold its trend or fall apart again.  With $TINY, both indicators below the chart are pointing downward which do not bode well for this stock.  Urrgh… I may have to bail if it cannot hold the uptrend line.

LRAD was disappointing and is the reason why my portfolio came down a bit today with its being my largest position.


This chart also has the two indicators pointing downward as well.  The 5 MA is pointing south and I like to see it bounce off the 15 MA later in the week.  Since this is a definite long-term hold for me, I’ve no choice but to tolerate its correction.

Current holdings:


My 2 cents.

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