05-22-2014 Trading Journal

The bear tried to slam the ball back to the bull but hit the net instead.

Thus, the bull continued onward today and is outside the consolidation range once again.

I’m not sure if I’m obsessing with $AMRN or simply sensing that a bottom is about to set in.  The fact that I’m still taking Vascepa everyday for the last 15 months straight may have something to do with my continued interest in $AMRN.  In a subtle way, my body welcomes the Vascepa intakes and I’m feeling good taking it. So that is that.

Price looks like it may bounce from here.

$DMRC bounced back up from the 89 MA line!  If you haven’t caught on to the magical power of the 79 & 89 MA lines by now reading my journals, you are missing the picture here.  Granted that it is not 100% guaranteed to bounce from these two MA lines, but the probability of the bounce is so strong that you are skipping over a powerful tool if you don’t incorporate it into your trading system.

Today bar can be called a bullish engulfment candlestick pattern.  Let’s see if momentum can continue upward from here.

Despite a strong bounce from $DMRC, continued corrections from $LRAD and $KGJI ate away some of the gain.  Thus, my port only gained 0.77% for the day.  YTD gain is now about 6.4%.

Current holdings:

LRAD, DMRC, SVBL, KGJI, SEED, AMRN, FSLR, CLDX and 9% cash.

From my other account:

$FITX continued higher after forming the strong bullish engulfment bar yesterday.  This is a good sign.

Let’s see if it can continue the momentum tomorrow.  Nevertheless, we need to hear about the licensing approval soon or the price may start to drip back down.

My 2 cents.

Ping pong anyone?  That what the market wanted to play.

In response to the ball from the bear, the bull sent it right back.  Chart actually looks encouraging for the bull since price closed above the resistance.  Now, i would not be surprise if tomorrow is a down day.  After all, it is the game of ping pong we are playing.

Today, I bought a position on $CLDX, a stock I used to trade successfully when it was under $6.  After missing the whole ride to the top of $38 and changes, I’m now giving the opportunity to catch the ride at this level.

Looking at the chart above, we find support that goes all the way back to May of last year. I’m betting that today mini-bounce will turn into the next leg up to start the 3rd wave of the 5-waves Elliot Wave theory.  If it takes out the high of the 1st wave, I may add more if I’ve cash left.

Next, I bought $FSLR.

Did you see the support that goes all the way back to May of last year?  There are also strong supports at this level back in Jan and March of this year.  Thus, the odd of bounce is pretty good.

$DMRC dropped some today and price is now at the 89 MA support line.

I like to see the support hold and price bounces off from here.

$LRAD corrected a bit after three days of rallies.

Price came back down to support.  Let’s see if it can bounce tomorrow.

Due to drawdown from $DMRC and $LRAD, my port dropped 1.4% today.  YTD gain is now around 5.6%.

Current holdings:

LRAD, DMRC, SVBL, KGJI, SEED, FSLR, CLDX and 13% cash.

From my other account:

$FITX opened lower and I was tempted to buy bottom.  But I decided to wait instead of catching a falling knife.  Later in the day, price began to climb back quickly above $0.05.  This convinced me that the buyers were coming back.  I began to buy back some position.  Even though I wasn’t buying below $0.05; I was still paying less than what I sold for earlier.  As long as the momentum continues to head back up, it doesn’t matter that I didn’t buy it at the bottom.  I’m buying the momentum that gives me better odd of riding the trend.

Today chart shows a very nice bullish engulfment candlestick bar.  If they announce news of license approval, today low will become the bottom.

My 2 cents.

Just when you thought the market might make another attempt to break out of resistance, it went the other way once again!

I believe the market is range-bound currently.  It will probably be trading inside the range for the duration of the summer.  Time to brush the dust off the “range-bound” trading strategy book to refresh my memory.  Basically, in a few words, take quick profit when you see it, forget buy and hold for now.

Not so fast!

I’m still going to be holding $LRAD, $DMRC, and $SVBL for long-term since these are event-play.

Today, I didn’t do much except to take small losses on my $CARA and $CCJ trades I bought yesterday.  I also tried bottom-fishing on $AMRN but got out by day-end since it could not hold $1.30 support.

Meanwhile, my port is taking a 1.75% dip from corrections of $DMRC, $SVBL, $KGJI, $LRAD plus day-trading losses from $AMRN, $CCJ, and $CARA.  YTD gain is now a bit over 7%.

From other account:

Mostly cash. Out of $FITX since yesterday. I may engage in short-term swing trading or day-trading with this margin account to see if I can trade the range-bound market.

My 2 cents.

Market continued the bounce from last Friday.

Even though the DOW was up slightly, the S&P500 looked pretty good on the chart.  Price is now near the top band of the consolidation range.

$AMRN made new low and I saw no reason to hang around holding my position anymore.

The new low was disappointing ’cause I didn’t think it could go that much lower.  Oh well, I took my “new” losses and moving on.

Later on, I noticed that $CCJ was trading near a low that has strong support going all the way eight months.

I bought a starter position to test the water with a hard stop below recent low.

I’m also seeing the same strong support in the $14 range for $CARA.

Did you see how price traded near the $13-$14 range that goes back to February?  I also bought a starter position for the bounce.

$LRAD continued to excel by taking out the upper band of the consolidation range.

By doing so, it also took out the 79 MA line.  Let’s see if this one can take off from here in a big way.

Thanks to gain from $LRAD & $SVBL, it was enough to offset the losses from $DMRC, $KGJI, $SEED & $AMRN to keep my port at breakeven.

Current holdings:

LRAD, DMRC, SVBL, KGJI, SEED, CCJ, CARA and 16% cash.

From ,my other account:

$FITX opened down and I immediately unload my positions pieces by pieces.  When I looked back at it, I scratched my head on why I even bought it back last Friday for the bounce.  I sold it last week ’cause I felt the price would have a hard time going up due to $FITX having to apply for zoning permission to increase the size of the production facility.  And yet, on the next day, I completely forgot the reason for it and bought back for the bounce.  Today, I paid the price for forgetting…  Oh well, moving on.

My 2 cents.

Market bounced back some today.

If you look at the trendlines right below today low, you will see that even though price was down the last two days, the market is still in an interim uptrend simply because today was a bounce day.

$KNDI opened lower so I decided to sell my position to take small losses instead of riding it. I was looking for a continuing upward momentum and since it didn’t happen, there was no need for me to hang around.

$KGJI, on the other hand, opened strong and rallied hard early in the morning.  Naturally, I added more looking for $2+ in the near future.

Volume was very high today and price gave back gain from the morning spike.  Nevertheless, it was still up for the day for a healthy 22.5%.  While I added more at higher price, I’m still up on this position overall.  Price is now stuck inside the 79 & 89 MA lines, I like to see price climbs out of this support and rally forward.

$LRAD spiked nicely later in the day.

Price is now trading at the upper band of the consolidation range.

$SEED began to bounce again waiting for the prospective buy-out result.

Price is now trading above the 79 & 89 MA lines.  It is looking good from here.

Even with a minor correction from $DMRC, thanks to rallies  from $LRAD, $KGJI, and $SEED, my port is up 1.8% today.  YTD gain is now 9%.

Due to $LRAD spike up today, it is now the largest position in my port with $DMRC coming in second.

Current holdings:

LRAD, DMRC, SVBL, KGJI, SEED, AMRN and 11% cash.

From my other account:

After watching price collapsed below $0.06 in mid-day, I began to look for price to settle to buy the bounce.  When I finally saw the 5 min. bullish engulfment candlestick pattern being developed, I began to buy back shares.  By the time I was done, I bought back about 70% of my original size.

You can see a lot of support at today low by looking at the chart.  This was why I’d no qualm buying the bounce today.

My 2 cents.

Well well well, the newly minted support could not hold and price fell thru its like it was made of paper.

Price began to bounce around mid-day in a slow ant manner.

Naturally, I added to $TZA when price bounced higher.  I then set the hard stop to below intra-day low.  It never hit so i moved the stop to my entry point.  I was making nice dough early in the day;but by afternoon, most of my gain was gone.  My breakeven stop to my adds was hit and when time was near the closing bell, I sold the rest of my $TZA for breakeven as well.  While the S&P500 bounce was not great but it was firm; thus I decided to cancel my $TZA trade.

$KNDI was behaving nicely later in the day by heading back to positive territory so I decided to buy back starter position with the available cash.

Price looks like it is ready to bounce again. I’ll add if price heads higher tomorrow.

$AMRN took a hit today and I added a bit more ’cause I believe price will head back higher in the long run.

Notice that price is now nearing the support that started back in November of last year.  If that support doesn’t hold, I may have to think about cutting losses.

$DMRC was surprisingly strong today despite a down day.

Price closed higher than the down line and it is looking good for a next leg up.

Despite $AMRN big drop today, rallies from $DMRC,and $LRAD offset the losses from AMRN and $SVBL to come out at breakeven for the day.  YTD gain remains at 7.2%

Current holdings:

DMRC, LRAD, SVBL, SEED, AMRN, KGJI, KNDI and 14% cash.

From my other account:

I sold the rest of $FITX today.  This whole zoning issues with town people to approve the expansion is becoming a hindrance to higher price.  Better sit on the sideline to see what happen.

My 2 cents.

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.

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.

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.

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.