05-14-2014 Trading Journal

Today, the market took a correction and headed back down to the support line. Now, it is perfectly normal for a breakout rally (from resistance) to come back to test the “newly” minted support (formerly a resistance) before taking off again.  The key question now is will this new support hold?  Tomorrow, we shall see.

Today down day had me dumping losers in a hurry.  I sold $KNDI at the open ’cause it opened down and I was already in the hole more than I should be. Trading discipline demanded that I sold to cut losses and I did.  It is as simple as that.  While the losses were bigger than I planned for, it should never be an excuse to hold for “better” price since it might not come.

$CERS was trading below $4 support so it was a no brainer for me to dump it as well to take small losses

$DDD was also trading down at the open so I decided to take profit instead of taking a chance to give it all back as I had been doing with some other stocks such as $NUGT.  Sure, I wished I had wait a bit longer to sell at a much higher price but the market DEMANDED that you take the risk to see to it.  And I’ve learned that you MUST RESPECT RISK at all times.

Having sold off some losers, I decided to buy some $TZA as a hedge.  By day close, I’m up a bit on this position.

$DMRC corrected a bit today.

But if you look at the daily chart above, you will notice that it is now trading at the upper range of the symmetrical triangle pattern.  A breakout of the triangle can end with a strong rally.  We will see about that as well.

Today wasn’t a good day for my port, with $DMRC, $LRAD, $SEED, KGJI all corrected a bit, my port gave back 1.4%.  YTD gain is now 7.2%

Current holdings:

DMRC, LRAD, SVBL, SEED, AMRN, KGJI, TZA and 16% cash.

From my other account:

Seeing that price continued to head south before Health Canada approval, I began to suspect that there might be some weight regarding the zoning issue.  So I decided to lighten up my position to reduce risk.  If the zoning issue is real, $FITX is no longer the largest cannabis producer in the world simply because they are not allowed to build add’l facility to grow the volume of MMJ to become the largest producer.

After lightened up, I can now wait to see what happen.  I may or may buy back shares I sold today.  Later in the day. $FITX facebook included a link to a news that they have submitted an application to increase their building space to grow more MMJ.  This release practically confirms the earlier rumor on the zoning issue.  Oh well, nothing to do but to see what happen next.

My 2 cents.

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Market was holding its ground all day at the new high.

While the price movement was in small range, I considered it a great achievement that price did not fall back into the consolidation range. You could almost feel that the market is dipping its toe into the water on the new high territory.  Once it gets comfortable, price will have a high probability of continuing the rally from here.

After I read the earnings transcript on $AMRN, I believe that the business of Amarin may begin to grow from here.  Thus, I bought in when price was still down from the open.

While price gave back some gain at the close, we still have a bullish engulfment bar that may increase the probability of a bottom.

Seeing that $KNDI was opening higher, I added some more.

Oop! Price could not hold and collapse below $13.00.  ’cause I wasn’t watching the stock today, I did not have a chance to get out to cut losses quickly.  So I decided to give it a bit more time to bounce.  Price currently is still above the 5 & 15 MA lines; but if it breaks down below these two MA support lines, I may bail and cut losses.

I also added a bit more to $CERS since it bounced higher in the morning.

But price closed on the negative at the end.  I’ll see where price is heading the next few days before deciding what to do with it.

$SEED spiked up today ’cause another company in China want to buy them out for $2.50.

I’m aiming for $SEED to reject the offer and ask for more.  Thus, I placed a good till cancel order to sell my lot at $2.99 just in case.  Without any approval from the Chinese gov’t regarding $SEED GM seeds, it is difficult to justify a price of over $3.00.

$KGJI also staged a nice bounce today.

Look at that tall green bar!  There is earnings coming out later this week; perhaps, people are expecting another positive quarter.  How many positive quarters will it take for investors to finally believe in the legitimacy of $KGJI?

$DDD continued its rally and bump its head against the $51 resistance line.

As you can see, it went over $51 but failed to remain above it.  However, it still closed decently. Let’s see it tries again tomorrow.

$DMRC was down earlier but made a nice come back by the close.

See how the tail bounced off the 5 MA line and now closed above the 15 MA line?  The most important part is that price is still above the 79 & 89 MA lines which mean the overall trend is still bullish.

Despite falling price from $SVBL and $KNDI, gains from $DMRC, $SEED, $KGJI, and $DDD more than made up the losses and push my port another 1% higher. YTD gain is now 8.6%

Current holdings:

DMRC, LRAD, SVBL, SEED, DDD, KNDI, AMRN, KGJI, & CERS (100% invested/speculated)

From my other account:

While $FITX corrected some today, I’m basically still waiting for the Health Canada inspection result.  Some people are getting impatience and bailed due to some “alleged” zoning issue.  Oh well, this is speculation at its finest.

My 2 cents.

 

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On Friday, I said sooner or later, the bull is going to break thru the resistance and make new high.  Well, it happened sooner than I thought, it made new high today. Look at that green bar sticking out of the consolidation range.  Now, in order to confirm the continuing bull force, It is important that price does not fall back into the consolidation range inside this week.

$KNDI earnings report today convinced me to jump back in.  The fact that revenues increased over last year 1st Quarter meant that last quarter higher EV sales was no fluke. Although I bought after price spiked up, I was able to get some under $13; thus I am in the money on the trade so far.

The chart above looks like the bottom has a solid foundation. If the momentum can continue upward, I may add some more.

I also bought back some $CERS for the bounce.

Today had a bounce; however, I don’t have a strong conviction on this one since their earnings were not so great the last two quarters.  The only catalyst left on this stock is the FDA approval of its product in the US.  In other words, I’ll be quick to cut losses if price turns around from here.

$DDD opened higher and I was thrilled.  So I added a bit more.

Price climbed back above the support from last year October.  Let’s see if it can take out $51 resistance from here.

$DMRC continued to bounce higher.

Price closed above the 5 MA line today.  Let’s see if it can take out the 15 MA line tomorrow.

$LRAD also had a nice bounce today.

Price is now trading above the 89 XMA line and the 5 MA line has crossed over the 15 MA line.

All my stocks in my port went up today with $DMRC and $LRAD leading the biggest gain for the day. Thus, my port was up 3.3% today and YTD is now 7.6%.

Current holdings:

DMRC, LRAD, SVBL, DDD, SEED, KNDI, KGJI, CERS and 10% cash.

From my other account:

Still waiting for $FITX to announce result of Health Canada inspection.

My 2 cents.

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Well, the bull was one tough bull, isn’t it?

No matter what the bear threw at it, it is still trading at the upper part of the trading range.  Sooner or later, the bull is going to break thru that resistance and make new high again.

$GOGO started off the gate going negative so I sold it for small losses.  As much as I would like to see it bounce, I wasn’t going to fight a downward trend.

$DDD on the other hand was showing a bounce back after the initial drop at the open.  Seeing a long-tail candlestick in development, I bought back some shares for the bounce.

It did bounce more so I’m in the black on this trade so far.  Notice that the low of the day touched the lower band of the Bollinger band; this only “increases” the probability of a bottom.

Notice the weekly $DDD chart below:

Did you see the doji bar right at the support?  Major support here if the Doji-support combo hold.

$DMRC made a nice comeback and a bounce from the 79 MA line.

There is a strong probability of a continuing bounce now that it bounced off the 79 MA magical line.

Thanks to bounce from $DMRC and $LRAD, my port bounced back up 1.3%.  YTD gain is now 4.3%.

Current holdings:

DMRC, LRAD, SVBL, SEED, DDD, KGJI and 22% cash.

From my other port:

Waiting for $FITX to announce Health Canada inspection result and license approval.

My 2 cents.

 

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The market played a teasing game today.  It went up all morning and then came crashing back down in the afternoon.

While price as still in the trading range, the fact that price could not hold on to the top range meant the bear was pulling the bull back.  This back and forth b/w the bull and the bear is getting tiresome.  Not only that, it created plenty of whipsaws for my trading style.

If I had took short-term profits quickly for a day or two holding range, I would have been making quite a bit of money last two weeks.  Instead I witnessed profit vaporization the last two weeks ’cause I held them too long.  I held them for the purpose of a sustained rally which did not happen.

Today was a perfect example.  I had profit on $DDD early in the week but I held too long and today I had to bail at a losses simply ’cause I wasn’t paying attention to the price action. To make the matter worse, I added more $DDD in the morning which increase my losses a bit more by the time I got out.

I bought $GOGO looking for a bounce after the open.  I was doing ok until the turnaround in the afternoon which caused me to take a losses for half of my position.

Seems like the “falling” of the momo stocks is not over yet.

Today, $DMRC continued to head south and my port continued to take a hit. Together with losses from $GOGO and $DDD, my port dropped another 1.5%.  YTD gain is now 3%.  The three biggest draw-downs that brought my port down to 3% from 12% came from $DMRC, $LRAD and $SVBL which also happen to be my three largest positions in the port.  The irony is that these three stocks are mainly “event” stocks.

$DMRC: waiting for major retailers adoption of Digimarc barcode

$LRAD: waiting for military mega-orders of the long-range acoustic device or widespread adoption of their mass notification system.

$SVBL:waiting for a buy-out or a flight to precious metal mentality.

I’ve no idea if any of these events will take place but I know that if they do, I will win big, very big.

Thus, I’m willing to sit and wait and suffer the volatility that comes with it.

Current holdings:

DMRC, LRAD, SVBL, SEED, KGJI, GOGO and 25% cash.

From my other account:

Waiting for $FITX to announce result of Health Canada inspection.

My 2 cents.

 

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The bear was quite persistence in trying to drag the bull down; and yet the bull forged ahead despite the pull…meanwhile, the momo stocks, being perpetually weak and hungry all the times, could not resist the pull of the bear and fell thru the abyss into the bear stomach…

The $SPY was showing some fortitude with a green bar with a long tail.

Feeling the pull of the bear in the morning, I stopped out of $WPRT and $DDD for small losses; I practically gave back all gain from yesterday.

$AMRN could not hold on to $1.62, which was yesterday low, so I dumped the whole position at $1.61 for small losses.

I gave $NUGT more time to bounce in the morning but instead it continued to head lower.  By the time I saw my unrealized gain completely disappear, I dumped it at breakeven.

Seeing that $DNN already took out the low of the long bullish engulfment bar a week ago, I saw no point in holding anymore.  In fact, I should have sold it when it took out that low yesterday.  Needless to say, I sold it to cut losses as well.

By the end of the closing bell, I saw $DDD and $WPRT bounced back from the low, so I bought back 50% of my positions to see if it will bounce tomorrow.

Due to the multiple losses I took today as well as another correction on $DMRC, my port dropped 2.5%. YTD gain is now 4.5%.

Current holdings:

DMRC, LRAD, SVBL, SEED, DDD, KGJI, WPRT and 19% cash.

From my other account:

Still waiting for hear on Health Canada approval of license for $FITX.

My 2 cents

 

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Just when the bull thought it got away yesterday, the bear pulled the bull by the collar and yanked it back down.

And so the tug of war continued b/w the bull and the bear…As of now, market is trading in the consolidation range; so I wouldn’t call it a bear market yet.  In fact, if you look at the long-term trend line, we are still in a bull trend.  A pause in the long road ahead.

I sold $KNDI in the morning when I thought I would be adding more.  Why did I sell?  Well, from the SEC investigation, $KNDI did hire the promoters back in 2009 and 2010 and I was being mindful about a possible backlash from this news.  Based on today trading range, I was wrong to assume it.

Oh well, but all was not lost.  I used the money to add more $DDD in the morning when price action was behaving very strong.  I was correct to add more in the morning.  Price continued much higher afterward.

Price is now banging against the resistance from three trading days ago.  Despite today down day, $DDD was able to maintain altitude.  Let’s see if it will bounce higher tomorrow.

I’ve been eyeing $WPRT ever since the surprised earnings report a couple of days ago.  I was waiting for it to correct to buy in and price just wouldn’t come down.

Seeing that price was trading in the 79 & 89 MA resistance lines, I’ve to make a bet on whether price will take out the resistance and head higher or drop back down below.  I opted for the former and bought $WRPT with the free cash from sales of some $AMRN yesterday.  Despite today down day, $WPRT was holding quite well.  Price actually broke out of the resistance during the day, I would like to see it bounce higher tomorrow or later in the week.

Well, $DMRC could not hold on to yesterday gain so my port took a hit on that; however, rally from $DDD helped offset some of the losses and my port gave back only 1%.  YTD gain is now 7%.

Current holdings:

DMRC, LRAD, DDD, SVBL, SEED, AMRN, NUGT, KGJI, WPRT, DNN (100% invested/speculated)

From my other account:

While $FITX bounced nicely today, the name of the game is still about waiting for Health Canada approval of license.

My 2 cents.

 

Comments »

The market made a dramatic come-back after opening down.

Look at that nice green bar.  This can only mean that the bull still has some sharp horns against the bear.

$DMRC published a white-paper that further supports the benefit of using Digimarc barcode for retailers. As far as I’m concerned, laser scanning for old upc barcode label is akin to VHS technology.  Image scanning is the new wave and Digimarc is all about image scanning plus more.

Price broke out of the resistance at $34 and closed nicely at $35.  All we need to hear is that a major private label retailer sign-on for the new Digimarc barcode and it may create a domino effect of other retailers to jump on board.  I’m going to hold this one for the long haul.

$KNDI woke up in the last hour of trading and price spiked up nicely.

Price took out both the 5 and 15 MA lines.  I may add more using the money from the sale of $AMRN today if price can maintain the altitude tomorrow.

$AMRN did not continue with last week momentum so I unloaded 40% of my position at breakeven to reduce risk.

The chart did not look particular bullish right now.  However, I’m still holding a decent amount for a possible bounce.

Thanks to rally from $DMRC, my largest position, and a few other positions, my port gained another 1% despite corrections from $KGJI, $DNN, $AMRN, and $DDD.  YTD gain is now at 8%.

Current holdings:

DMRC, LRAD, SVBL, SEED, DDD, AMRN, KNDI, NUGT, KGJI, DNN and 4% cash.

From my other account:

Waiting for $FITX to announce result of Health Canada inspection of facility and approval of license.

My 2 cents.

 

Comments »

Although the market was slightly negative today, I felt a strong undercurrent supporting the bullish stance.

Price is still above the 5 MA line despite a negative close.

Not to be given up so quickly, I tried $NUGT once again by buying in when price opened higher than yesterday close with a hard stop below the intra-day low.  This time I got traction.  My stop was not hit and I recovered all the money I lost from the last time I was stopped out of.  I’ll continue to hold this one as long as I can.

Chart showed a nice healthy bounce from here with volume greater than the last six trading days..

I also bought back some $KGJI which I used to own awhile ago but dumped it before the collapse.

I bought ’cause price bounced nicely off the support that goes back to September of last year. Let’s see if this one can bounce back to its formal trading range in the $1.7x area.

$DMRC bounced nicely today.

Today green bar may just be the beginning of another uptrend.  We’ll see next week.

Due to immediate gains from $NUGT and $KGJI as well as gain from $DMRC, $LRAD, $AMRN, my port went back up almost 2%.  YTD gain is now 7%.

Current holdings:

DMRC, LRAD, SVBL, AMRN, SEED, DDD, KNDI, NUGT, KGJI, and DNN (100% invested).

From my other account:

Waiting for $FITX to announce result of Health Canada inspection and license approval.

My 2 cents.

 

Comments »

The market took a pause today. 

See the doji bar near the resistance.  It could go either way… tomorrow we will find out.

I was quite impressed with $DDD transformation after reading their earnings report.  It has changed my perception of this company favorably.  I originally focused mainly on $XONE due to its metal printing machine; but $DDD actually made a lot of headway in this area as well.  Giving the bounce after the drop from the earnings news, I took the opportunity to buy some here as almost 50% discount from the previous historical high. 

From the weekly chart above, you can see the support goes all the way to early 2013.  If price remains about the same tomorrow, we will have an inside week that could serve as a possible bottom if this week high is taken out next week

Somehow, i can’t take my hand off the $KNDI machine.  I bought back a standard size position to see if it can bounce up from here. 

Price is still trading near the support so i will either get whipsawed again or finally catch the bottom from here.

$AMRN was holding well in the morning so I decided to add more to bring it back to the size I had two days ago. 

Price bounced nicely today.  If you look at the daily chart above, you can see the channel range from late January of this year.  Price seems to be bouncing off the bottom of the channel right now.

I had to admit I was a little hasty to add more $DNN after the open. 

Now, if I could only wait… but it is hindsight talking anyway.  After the big green bar yesterday, price has to take out the low of yesterday before I start thinking about cutting losses.  Meanwhile, I’m going to give it a bit more room to fluctuate.

$DMRC took another tumble today but somehow I’m not worried about this one. 

Price is still above the 79 & 89 MA lines; however, it is my belief in the $DMRC technology that put me in a calm mode.  After all, I have to be in the position to take advantage of any favorable development.  Missing out the rocket launch of $GWPH by one day is a huge lesson for me to learn.  One must learn to take some reasonable drawdown to stay in the game for the event news.  Due to downdraft of $DMRC and other positions, my port was down another 1%.  YTD gain is now 5%.

Current holdings: DMRC, LRAD, SVBL, AMRN, SEED, DDD, KNDI, DNN and 7% cash.

From my other account: Nothing new here except to wait for Health Canada inspection and approval of the license.

My 2 cents.

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