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

10-03-2014 Trading Journal

The market took a V-shape bounce and confirmed a bullish hammer reversal candlestick pattern.


The good news is that price is now back above both the 89 MA line and the 5 MA line.  Next week will determine if this bounce can put the bull back in charge.  In other words, today price action has put the bull back in even ground against the bear.  It is now 50/50 for either direction from a short-term perspective.  From a long-term perspective, the bull is still in charge as shown in the weekly chart below:


The long-tail doji reflected a pattern of “pausing” if you looked at the previous weekly bars on chart.  Thus, I say the probability of a continuing bull move up is high.

Today, $LRAD made up for yesterday’s lack of movement.


As you can see, price is now above both the 5 and 15 MA lines with the 5 in the process of crossing over the 15.  This is very bullish.  If price can move over $3 next week, price may test the previous high of $3.88.  The weekly chart below shows a even more favorable odd of a continuing bounce.


Notice price bounce off the  weekly 15 MA line.

$DMRC was able to hold its gain from yesterday.  It was a worthy battle b/w the bull and the bear and the volume reflected it.


Price needs to move above the 79 & 89 MA lines soon to get back on the bull side.  Meanwhile the weekly chart shows a beautiful bullish engulfment candlestick bar that reflected a strong tendency to bounce from here.


Perhaps, next week it will take out the 79 & 89 MA lines.

$ORBC, like $DMRC, was able to fight off the bear to hold the gain from yesterday.


Price still need to work hard to get back above the 79 & 89 MA lines to maintain a strong bullish outlook.  Giving the confirmation of a bullish hammer reversal pattern here, I say the probability of a continuing bounce is good.  The weekly chart below reflected the determination of the bull to get back on track.


See how price is now back on top of the 79 & 89 MA lines; based on the magical quality of these two MA lines, $ORBC is going to bounce from here.

$IBIO was also able to fight off the bear and closed higher.


Price is now looking like a potential double-top.  Not necessarily a good sign; however, if you look at the weekly chart below, price definitely look like it is going to take out the January high of 0.85 soon.


See how the weekly bar closed much higher than the 89 MA line?  Notice how all the weekly MA lines are either in the process of pointing up or already pointing up. We may see price trading over $1 soon.

As you can see from the daily charts above, all four of my positions were up today.  My port gained back another whopping 4.2% with YTD gain at 4.2%.

Current holdings:

LRAD, DMRC, ORBC, IBIO and 5.5% cash.

My 2 cents.

My reminder:

Wisdom from Warren Buffet:

“With a wonderful business, you can figure out what will happen; you can’t figure out when it will happen. You don’t want to focus on when, you want to focus on what. If you’re right about what, you don’t have to worry about when”

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