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Yearly Archives: 2014

01-10-2014 Trading Journal

Another neutral day for the general market; however, on the SP500, it is definitely biased to the upside due to the consecutive positive closes from Tuesday to today.

Today, except for a small correction on $KNDI, my other seven stocks traded higher at the close.

$GALE continues to trade well and price action is now trading above the 5 MA line which is very bullish from my perspective.


Notice price action is also following the upper band of the Bollinger band.

$KGJI is testing the resistance at $1.85 once again.


It is looking more and more feasible that by next week, price will trade over that resistance.

$CERS has a strong week and price took out the resistance of $7.13 from early October.


From the weekly chart above, I can deduce that price will head much higher from here.  $8 is the next target.

$AMRN is able to close above the December high of $2.19 today.


This is definitely a good sign since it is reflecting a general consensus that FDA “may” come out with some positive response by Jan. 15th.  Of course, this is still a gamble on a binary event; but I sense that the cards may be in our favor the way a card counter know that the dealer may bust giving the number of high cards in the shoe.

$TINY finally came back to life today with price action closed above the 79 & 89 MA lines.


Notice that the Bollinger band had shrunk with price action closed above the upper Bollinger band.  There is a possible breakout to the upside in the next few weeks.

$LRAD is holding its ground above the $1.90 price zone.


See how the 5 MA line is now beginning to point up and may be crossing over the 15 MA line next week.

$XONE continues to hold its ground above the November high at $64.70 support..


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

And finally, $KNDI continues to trade inside the consolidation range (grey box).


Since the overall trend is still up, I’m not worried about current price action.

Since seven out of my eight stocks closed higher today; my portfolio continued to head higher.

Current holdings:

KNDI, LRAD, GALE, CERS, KGJI, XONE, AMRN, TINY (fully speculated)

Regarding $PHOT on my other account:


As you can see, price bounced off the 15 MA line near the $0.19 line.  I added some more shares a bit below $0.20.  Since I’m still sitting on unrealized gain on my $PHOT speculation, the additional shares I’ve bought yesterday and today are considered averaging up.  I’m still a believer in $PHOT from a long term perspective.  Why do I worry about a 20 cents correction when I’m looking for dollars plus gain in the years ahead?

My 2 cents.

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01-09-2014 Trading Journal

Today was another neutral day for the general market.

In the same manner, my main portfolio also had a neutral day with three stocks up, three stocks down, and two unchanged.

$AMRN had a huge spike up that last thru out half of the day before it came crashing back down to a slightly positive day.


As we get closer to the Jan 15 FDA decision day, volatility will continue to increase.  Let’s see if price can maintain the upswing tomorrow to end the week in a positive note.

There is really nothing much to report for the eight hi-beta stocks in my portfolio today; however, $PHOT had a wild wild day.

At first, price gapped up and proceeded to head much higher.  After reaching intraday high of $0.467, it corrected a bit and bounced right back up to $0.46 before yoyo-ing b/w $0.38 and $0.44 thru-out half the day.  Then out of the blue, price began a waterfall action that was quite brutal; so brutal that the thought of selling shares entered my mind.

“Get out to lock in profit!”

But then I began to calculate…

“Price is dropping so fast that by the time my order get filled, I may as well get out at the bottom of today range; so why even bother if I still want to buy this stock back later.  I may as well be chasing this stock back up which will then increase my cost basis for no reason other than thinking I can time the market perfectly.”

Instead of acting on automatic pilot like I did with $SSYS trade which took me out of the trade and missed the ensuing bounce, I began to wait for it to settle down before picking up some more shares to take advantage of the correction.


Take a look at the daily chart above, if you take away yesterday big jump, today close represents just another small up day.

Current holdings:

KNDI, LRAD, GALE, CERS, KGJI, XONE, AMRN, TINY (fully speculated)

My 2 cents.

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01-08-2014 Trading Journal

Based on the SP500, market had a neutral day today.

On the other hand, both my portfolio makes new high today; the main and other account with $PHOT.

With the free cash available after the three days settlement was over from cutting my losses on $NUGT, I chose to add more $GALE and some $CERS instead of finding a new stock.  Why?  ’cause both of these stocks were heading higher in the morning.

$GALE gapped up and never looked back.  Seeing that price took out yesterday high and took out the opening range at the same time, I put 3/4 of the available cash into $GALE to go with the momentum.


How would I know $GALE would keep going up after I added?  I didn’t; however, statistically speaking, a strong upward momentum tends to have a high probability of continuing.  It is simple Newton’s law of motion.  See how price bounced off the 5m 79 & 89 MA lines?  Magical, isn’t it?

I also added to $CERS today ’cause it took out $7 buck .  I’d been waiting for this to happen and it did today.


Did you see how price also broke out of the previous high set in early October today?  Now that $7 is breached, it is ready to move on to $8.  I’m in the camp that there is a high probability FDA will approve $CERS’  blood purification system.

$KNDI had a wild run to the upside today and made new high before it came back down to cool off.


Today price action tells me that the market is looking for any excuse to run the price up.  There are a lot of people on the sideline waiting for any definite news to show proof of concept to run this up.  That is how I see it.  Still holding my position long and strong.

$LRAD finally bounced back up strong from the support (blue line).


Due to the fact that $LRAD is my 2nd largest position, today run up add fuel to move my portfolio to higher ground.

Today, six of my eight stocks moved up today, with $GALE leading the gain percentagewise, which allow my portfolio to reach a new level.

Current holdings:

KNDI, LRAD, GALE, CERS, KGJI, XONE, AMRN, TINY (fully speculated).

On my other acccount:

$PHOT had a “belated” monster run.


As I believe in the business model of $PHOT, I can only see that price can only go up and up.  With more States coming on board in coming years, $PHOT can become a force to behold if they manage it right.  With former executive from Microsoft and a stellar group of directors on board, I can only feel excited of the future prospect.  Continue to hold for $1+.

My 2 cents.

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01-07-2014 Trading Journal

The market roared back up today.

The only change I made today was to dump the $NUGT trade after it gapped down at the open.  Although it bounced back to close positive for the day, I’m not sure if the upward momentum is still intact.

$KNDI bounced back up hard in the morning but by midday, sellers again tried to bring it down.  Like a coiled spring, price bounced back somewhat before close.   I’m seeing a lot of resiliency in $KNDI.  All it needs is proof of concept by news of delivering of EV to new car-sharing garages for price to keep on moving higher.


Let’s see if price can continue to bounce higher tomorrow.

$KGJI finally broke out of the downtrend line and it just needs a little nudge to move it out of the $1.85 resistance reflected by the blue line in the daily chart below.


by the look of it, I think it is ready to rally.

$CERS continued to move higher.  We may be able to see a break out over $7 soon.


I like to see price takes out the 11/29 high at $6.86 by tomorrow.

$GALE continued to move higher as well.


I like the slow climb gradually over a quick run-up when I believe in the long-term prospect of the company.  $GALE seems to fit the bill here.

Today, four out of my nine position (shown above) rallied while the rest tumbled slightly; still my portfolio gained nicely due to $KNDI bounce back.

Current holdings:


My 2 cents.

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01-06-2014 Trading Journal

Oop! Market went down slightly again today.

And $KNDI went down even more.  I was expecting a correction like today and I was sorely tempted to take profit when it was trading back over $13 in the morning.  Again, I’ve to remind myself of the long-term perspective.  I put $LNG in my vision and then $CLDX.  Then I put the price action of $XONE for the last month in my vision as well.  $XONE traded below my initial buy at first and then it came back in spade.  $KNDI will do the same.  It will come back.

After some visualization exercise, my itchy fingers no longer felt like pressing the sell buttons; instead I bought some June call option ($15 strike price) to take advantage of the dip.

$XONE did well today despite its still being down for the day.  Instead of down near 6%, it came back up to settle for a negative 1.58% only while its peer $DDD & $SSYS were down 4% and 6.2% respectively.

Overall, six out of nine stocks were up slightly.  Due to $KNDI being my largest position now, it pulled my portfolio down a bit.  But I’m not worried yet.

On my other account, $PHOT continued to move ahead.  My unrealized gain has doubled but I intend to hold for much longer term.  Like I predicted, the shortage of legal pot is far more extended than expected.  Once Colorado proves to the rest of the country that it can generate mega-tax revenues from legalized cannabis, other States will want a piece of the pie as well.  $PHOT has the potential to become a billion dollar company if it is managed properly.  That is why I like this stock in the beginning when they hired the former Microsoft executive to run the ship.

It has been a long day for me so I’m not putting up any charts today.

Current holdings:


Other account: PHOT plus various option trades.

My 2 cents.


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01-03-2014 Trading Journal

Despite the DOW being up 28%, I considered it a neutral day since the SP500 closed slightly lower.

Today was a small correction day for my portfolio and was also the first change I made to my mixed bag of stocks.

Price action on the 5m chart on the $INO was acting very skittish in a downward fashion.


Immediately, my attention zeroed onto the chart and my trading sense told me to get out quickly when price took out the low of the last three days. I could sense a waterfall price action was about to happen so I sold.  Even though I like this stock for its possible multi-baggers potential, I’m keenly aware, from experience trading $INO, that once the upward momentum of the price action is stalled, price can drop pretty fast.


After I sold, price continued to head lower to the 15 MA line and bounced off from it.  I would look for a possible buy back when price find support at the 79 & 89 MA lines.

With the available cash free-up from sales of $INO, I added to $XONE and $AMRN to round up my position size and moved the rest to $NUGT.  I was expecting price action to take out the resistance of $31.44 and breakout to the upside.


It didn’t happen today; so I’m going to see if it will happen next week.  If not, I will have to cut my losses and wait for $INO to find support before jumping back in.

$XONE was doing fantastic today.


It finally broke out to the upside by taking out resistance from previous high of $64.70 established back in November 2013.  Today break-out is just the beginning of an upward momentum for the rest of the year is what I think it is.

$KGJI continues to bounce up from the 79 & 89 MA lines which tell me next week may be a rally week.


Price is now a short walk to break out of the downtrend line.

$CERS also broke out of the downtrend line.


I can see more rally ahead next week from here.

$LRAD was disappointing today since price took out the lower band of the consolidation to the downside.


Let’s see if price can bounce off the blue support line next week.

$KNDI had a healthy correction that didn’t take away too much gain from early this week.


Just from the look of the chart, I can see more rally next week.

Since both $LRAD and $KNDI are the two largest position in the portfolio, their correction can drag my portfolio down quite a bit.  But thanks to rallies from $CERS, $XONE, and $KGJI, my loss today was not that bad at all.  Even with today minor correction, this week was a great week for my portfolio.

Current holdings:

KNDI, LRAD, KGJI, XONE, CERS, GALE, AMRN, NUGT, TINY (fully speculated).

From my other account:

$PHOT had a strong opening this morning and I was very tempted to lock in profit when price hit the high of $0.25.  But then I’ve to remind myself that this is a long-term play and I’ll need to hold this for at least twelve months to capture the long-term capital gain tax rate.  I like to see more States join Colorado in legalizing recreational pot.  If this can happen, $PHOT will continue to head higher thru out the year in anticipation of more States coming on board.


Today, we have a long-tail (both sides) doji bar.   Let’s see which way price will go next week.

My 2 cents.

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01-02-2014 Trading Journal

After two weeks of up days to close the year, market decided to take a correction on the first day of the new year.

Fortunately for me, six of my stocks were up today with the other three down slightly.

The biggest winner today is again $KNDI. At first, it opened down a bit and then it rallied hard all day until the last hour when profit-taking brought it down a bit.


Notice that price continued to stay above the 79 & 89 MA lines on the 5 min. chart above..

From the weekly chart,below $KNDI looks very strong.


Notice that this week bar completely trade outside the upper band of the Bollinger band.  I’ve reason to believe that $KNDI upgraded to NasdaqGS listing today opens the door for institutions to buy $KNDI.

$GALE also climbed back up above $5 today so that was another good beginning.


If you look at all the MA lines and indicators, they are all pointing up.

The weekly chart also looks strong for $GALE.


With the $ADX beginning to trend up, I see there are still room for the momentum indicators to go up before they are being labeled as overbought.

$KGJI bounced today and that was a good sign.  From the daily chart below, you could see that price action was forming a symmetrical triangle b/w the downtrend line and the 79 & 89 MA lines.


I expect a pop to the upside soon.  Perhaps, it is now $KGJI turn to run hard. If it does, It will surely propels my portfolio to higher ground since $KGJI is my third largest position right now.

Thanks to $KNDI, my portfolio opens to the new year with a bang!  An auspicious sign indeed.

Current holdings:

KNDI, LRAD, KGJI, CERS, INO, GALE, XONE, AMRN, TINY (full speculated).

From my other account:

$PHOT continues to head much higher.


If there are shortage of legal pot in Colorado, I expect to see $PHOT reach a dollar inside three months.  I will not be surprised if the magnitude of the shortage in legal pot exceeds everyone expectation.

My 2 cents.


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2013- the year of Persistence, Patience, and Perseverance

Let me start off this post with a quote from Calvin Coolidge:

Nothing in this world can take the place of persistence. Talent will not: nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not: the world is full of educated derelicts. Persistence and determination alone are omnipotent.

In hindsight, we know the market has marched on ahead in an upward, albeit in a wavy manner, direction in the year of 2013; nevertheless, my personal path to achieving stock market gain was an uphill battle fraught with potholes and slippery slopes.

Potholes I fell into in 2013:

  • $ECTY- large losses (company filing bankruptcy)
  • $ETRM- medium losses (failed Phase III study)

Slippery slopes I encountered:

  • $AMRN- large losses (you know the story)
  • $USU- large losses (I bailed before the reverse split and the ensuing gigantic rally afterward)
  • $SZYM- medium losses (whipsawed from over-trading in downtrend market)
  • $APRI- medium losses (holding against a downtrend and gave up before the recovering year-end rally)
  • $NCTY- medium losses (mistake in betting big on a thinly traded and small float stock)

Despite the multiple losses I endured from the above trades, they were all managed losses.  In other words, I didn’t let these losses get out of control by averaging down.  While some of the losses were large, it was because I made the initial large bet to begin with and not as a result of averaging down   While I had suffered mental frustration with these controlled losses (who wouldn’t?), I did not wallow in self-pity, I got back up and moved on.  I am persistence because I know I can get my money back as long as I’ve my capital intact.  It is a matter of being perseverance in searching for the stocks that will give me back the money and more.

Sidebar: It is extremely important that you manage your losses according to sound money management principle.  If I had not managed my losses, I would not be able to recover no matter how persistence I could be.  The rule of trading world is that you MUST protect your capital to fight another day.  My trading style is focused on finding the hi-beta stocks that will give me the jackpot I’m looking for; thus, I know I’ve to take some hits from time-to-time.   While this has been my endeavor, I’m still developing and evolving as a trader; therefore, trading mistakes were made (as in $SZYM, $APRI, and $NCTY) and I’m learning from them.

Having covered my losses, let’s go over my wins!

  • $KNDI- very large gain
  • $INO- very large gain
  • $LRAD- large gain
  • $GALE- medium gain
  • $GOGO- medium gain
  • $NUGT- medium gain
  • $CERS- medium gain
  • $CLIR- medium gain

My biggest win in 2013 was $INO. Upon hearing about $INO, I did my research but was initially skeptical since stock price had been trading below below $1.00 for first half of the year. But when price started to climb to near dollar, I began to take notice of a possible breakout.  Then the proliferation of positive preclinical news came into the foreground.  With price advancing over $1, I began to average UP.  Not only that, I kept averaging up on each bounce up after a brief consolidation; by the time price reached $3, I was sitting on such huge gain it would be foolish not to lock in profit especially when I knew the preclinical trials result was still a long way to human trials.  In other words, the price went up too far too fast.  I exited about 80% of my position at an average price of $2.75 and the rest in mid-to-low $2.xx.  It was a very profitable trade.

$KNDI was a trade I found after I got burned by $ECTY.   Despite the punch on the stomach (figure-of-speech), I refused to give up my beliefs in the potential of EV.  $TSLA has pretty much convinced me that EV does have a place in our society after my few failed attempts to short $TSLA with put option.  My shorting $TSLA was based on simple assumption that the market cap had gone too far ahead of the fundamental; however, when I saw the actual Tesla Model S in the showroom and the elegant and simple design of the electric motor compared to the complicated ICE (internal combustion engine); I was sold on the concept of EV.

Tesla high-end car succeeds because Elon Musk knows that the top 10% of the wealth will buy the car if it looks nice and function perfectly.  And when Consumer Reports magazine gave the Tesla Model S the highest score in its Ratings: 99 out of 100 back in July, I knew then that EV is here to stay.

However, the only problem is that if $TSLA, the only EV with a much longer driving range on a single charge than its cheaper competition, already captured the top 10% wealth; who will buy the cheaper EV models with shorter range?  Hence my belief that $ECTY was the key solution to expanding the EV market for cheaper EV models.  Little did I know that $ECTY was so badly managed, despite its being the company chosen by US Department of Energy to spearhead the charging station project, that I promptly lost 80+% of my investment in a single day after $ECTY made an announcement of its major issues.

Still very much believing in the EV potential and that $ECTY mismanagement did not equal to EV failure, I kept on researching for the next EV stock to speculate.

Then I found $KNDI.

What tickle me the most about $KNDI is that it is not selling directly to the consumer which I know will not work because of the range anxiety.  Without the proliferation of charging station everywhere, it will be difficult for an accelerated growth in consumer buying.  But $KNDI is offering a solution that automatically solves the range anxiety issue; not only that it also solves the charging station issue as well.  By embracing the concepts of car-to-go and zipcar except that the EV must be returned to the garages strategically located at multiple fixed locations for recharging purposes, $KNDI found an optimal solution to the range anxiety and battery dilemma in the EV market.  What is more important is that consumers do not need to buy the car but simply rent them for a very low price that is cheaper than hiring a taxi.

At the time when I found $KNDI, price was trading around $5 after it came back down from a quick run to $8.  Because of the secondary offering after the spike to $8, the stock was mercilessly attacked by the short.  On top of that, the uncertainty from having to  wait for the new China EV subsidies that had yet to be announced only added fuel to the short.


Instead of going away like most everyone because of the history of bad blood from some stock scams from China, I began to see this as an opportunity to buy when it was still cheap.  After reading all the due diligence performed by other $KNDI believers and compared them to those who short, my own analysis prompted me to start building a position in $KNDI.  While I was building my position, $KNDI was trading in a tight range b/w $4.50 and $5.50.  Plenty of patience was required on my part.

The good thing about having a large position on a stock is that you tend to watch its trading pattern very closely on a daily basis.  And when price crossed back over the 79 & 89 MA lines to the upside, I could sense a coming rally.  Thus, I decided to buy a boatload of Dec $7.50 call to supplement my stock position.  As luck would have it, right after I had bought the options, the stock became a runner the very next day.  When price reached $9 and started to reverse direction, I had the good sense to lock in profit on 70% of my option trades.  The rest I gave back to the market when it expired worthless.  Having exited most of my option trades, I decided to reduce my stock position as well to lock in profit.  My swing trade mentality was in full-swing.

From then on, I bought and sold $KNDI to supplement my core position without success for two months.  In fact, my realized gain was slowly leaking thru the multiple whip-saws from my trading in-and-out of the trading position. And then the news of Geely announcing to the public that it would have the EV version of the London black taxi available in five years.  That was all I needed to hear to double-down on $KNDI.  After the Geely announcement, I knew it was time to stop swing trading $KNDI.  Why did I feel that way?  It was the subtle message from Geely that it is committing to the EV market; otherwise, why made such a bold statement?  With $KNDI being in a 50/50 joint venture with Geely for the sole purpose of building EV cars, $KNDI has a LOT to gain from this announcement.

Again, I was correct in my assessment; thanks to my double-down on $KNDI, my gain was quite phenomenon in the last week in 2013.

Sidebar: Performing daily homework in researching for potential runner is the discipline that keeps me going forward.  And I’m not just talking about picking up stock ’cause so and so says he/she is buying.  I need to analyze the fundamental and decide if the stock has the “story” as well as a chart pattern to support it before I venture in.  If you are willing to do YOUR own analysis and homework on a stock regardless where you hear it from, the stock will become YOUR own pick; not someone pick.  And you will trade this stock according to YOUR trading strategy; not someone’s.  The benefit of doing YOUR own analysis is that you will LEARN from your mistake and grow as a trader. Otherwise, you will never grow as a trader if all you do is to follow someone pick.

My purpose of writing about my thought process in my $KNDI and $INO trades is to emphasize the importance of doing your own research.  By doing your own research, you will get a much better sense of the stock and how it is trading.  If you are the more risk-taking type, you may even augment your position size like I’ve done with $INO and $KNDI.

$GOGO came to mind as another perfect example.  After The Fly made the call on $GOGO, I began to research the stock and like what I saw.  Then I started to build up my position based on my analysis of the chart-pattern.  In other words, I began to trade $GOGO irrespective of what The Fly was doing with his $GOGO position.  If you do your own homework, you make the stock your own and you only have yourself to blame if the stock doesn’t perform.  This is the ONLY way you can learn and grow as a trader.

To conclude my post, despite having my portfolio down in the middle of the 2013 due to my losses mentioned above, I was able to climb back out of the hole and ended the year in a very positive note.

Due to my evolving as a trader, I am now focused on shepherding my current portfolio of nine hi-beta stocks for the potential run-up in 2014.  Holding on to a winning position for as long as I can is the only way to make the big bucks.  I like to see all nine of my stocks, if possible, to run the way $LNG and $CLDX ran in 2013 (both of these stocks I used to own but got out way too early!)

Current holdings:

$KNDI – I believe $KNDI will dominate in China with its business model of selling to the car-sharing garages.

$LRAD – I believe its newly minted mass-notification technology will dominate the replacement of the obsolete bullhorn speaker notification system worldwide.

$KGJI- I believe that the new wealth in China will increase consumers’ crave for 24K gold products that $KGJI will have blow-out quarter-to-quarter revenues that price has no choice but to keep going up.

$CERS- I believe that FDA will approve $CERS blood purification system.  Why?  ’cause they are selling them to Europe already without any issues.

$INO- I am “betting” that $INO has finally tweaked its synthetic DNA enough to work in human.

$GALE- I believe its Astral drug will sell well quarter after quarter.  I’m also “betting” that its NeuVax breast cancer treatment will succeed.

$XONE- I believe its 3D manufacturing machines will become dominant in the manufacturing sector.

$AMRN- I believe FDA will meet $AMRN half-way on its Vascepa label expansion.

$TINY- I believe that its portfolio of private investment in multiple nanotechnology companies will take fruition in 2014.

I wish everyone a happy and prosperous New Year!

My 2 cents.

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