11-13-2013 Trading Journal

Market opened down and proceeded to work its way back to the surface and then flew up to the sky!

My first order of the day was to get back into $PXD due to a higher pre-opening price. Once market open, I immediately bought back the shares I sold yesterday albeit as a much higher price from what I sold.

Sidebar: In trading, you do NOT want to think of “could’ve” been this “$” ’cause thinking this way will cause you to hesitate. Don’t even think of trying to buy back at price you’ve sold before ’cause it will make you lose the opportunity to get back on the horse especially when the horse is already running in the direction you want. You want to look at each trade as a brand new trade. Ask yourself if you will take this trade today as if you haven’t traded it before. If the chart supports it, by all mean, take the trade. Forget the fact that you’ve taken a loss on this the day before.

Yesterday I sold ’cause the chart showed that price might continue to head even further down without the 79 & 89 MA supports. This morning price action cancelled this bearish thesis and by having the opening price started on top of the 79 & 89 MA lines reinforced the support once again. Remember, the 79 MA is still pointing up even though the 89 XMA is flattening. In my book, the uptrend is still intact; thus, the only action I needed to do this morning was to buy back $PXD immediately.

When price continued to head higher by taking out the upper opening range, and then taking out the previous days high, I kept adding to my position. By the end of the day, $PXD is now my 2nd largest position in the portfolio behind $LRAD.

See how the big green bar today confirmed yesterday low at the interim bottom for a possible big bounce ahead.  BTW, for those who look for waves sign or follow Elliot Wave Theory, today bounce “may” as well complete the ABC wave correction after a five waves uptrend. I know, price needs to take out the high Nov 5th before we can confirm the ABC pattern.  If the price action of $PXD cannot convince you of the hidden wave patterns some stocks seem to follow, I don’t know what will.  We have a five wave Elliot Wave uptrend that follows by an ABC (3 waves) correction which happens to land directly on top of the 79 & 89 MA lines support.  Magical!

$KGJI opened higher and I immediately bought back most of the shares I sold yesterday.  Again, same principle as $PXD.  A strong gapped-up cancelled the bearish stance from yesterday down day.  And yes, I paid more than I sold for.  So what if price will take off big time from where I’ve bought today.

Although price did not stay on the high side at closing bell, I take comfort that the 5 MA line is now crossing back above the 15 MA line.

$GMCR opened lower due to news and I sold my position after waiting for a few minutes.  I know, if I waited a bit longer, I might be able to spare the loss and made even more money since price closed on the positive side.  At first, I thought about putting a stop much lower than the opening range low to give it more room but I decided against it as my own peril.  Oh well, moving on.

However, based on the chart, it does look like a bottom has been formed and a buy might be in order if today high is taking out tomorrow.  I might just do that.  Remember, today losses is behind me.  If price can bounce back to the formal high of $90, who cares about a couple of buck “former” losses?

$AMRN… I was cheated today.  Price dropped below $1.50 and I panicked and sold.  Afterward, price climbed back up and closed higher for the day!   Unless price can take out today high, I’ll stay away from this one for awhile since I’ve been whipped-saw to dead from it.

$GALE was my best friend today.  While I expected the next target of $3 to be hit soon, I didn’t expect it to be hit today.

After seeing price climbed over $3, I watched to see if it could hold.  I looked at the 5min chart and saw it struggling.  Therefore, i decided to cash in my profit before giving it all back.  I sold 80% at first and was stopped out of the rest when it broke the $3 to the downside.  Today volume was very large.  This could mean a major distribution was underway at the $3 resistance.  With that kind of volume and price could not move higher than $3, I decided to exercise caution.  I chose not to jump back in even though price settled back at $3.  I like to see if price can continue to climb before buying back in.  However, I banked a healthy gain.

$KNDI had a nice bounce and I like the fact that it did not trade below the 5 MA line.

Thus, I’m still holding all my shares.

$CERS also showed a strong possible bottoming pattern due to today bullish engulment bar.

I may add more tomorrow if today high is taken out to build my position back up.

$AUDC bounced higher and I added some more.

Also, the 5 MA line is hooking back up so it is a good sign.

I sold my $TINY position as breakeven and thought I was lucky to be able to do that given the poor earning report.

$LRAD had a minor correction and that was to be expected giving yesterday big up day with no news.

Due to strong move on $PXD and $GALE, my portfolio increased nicely today.

Current holdings:

LRAD, PXD, KNDI, KGJI, CERS, AUDC and 26% cash.

My 2 cents

Market was down slightly today.

$KNDI opened neutral and then headed higher, I added some more due to good bounce. But then the price could not hold and began to fall. After price settled around $6.6x, I began to add some more to rebuild my position.

While the chart today looked like an indecision from yesterday bounce, I would like to see continued upward momentum to maintain the long-term upward trend. In other words, price needs to go up to stay above the 79 & 89 MA support lines. To do that, $KNDI needs to release more news to reflect their continued progress in their business model.

I bought some $TINY to bet on some positive development from the earnings after hour.  Look like it was a wrong bet since their NAV per share is lower than last year.  Sigh…  I’m giving too much positive expectancy to this stock.

$KGJI had finally succumbed to gravity and sold off today with a bearish engulfment bar.  I had no choice but to lighten up my position size to reduce risk.  Regardless of how I think they will surprise on earnings. you can’t help but wonder how lower gold price can affect $KGJI future earnings.

I wonder if price will drop back to the 79 & 89 MA support lines at $1.5x to 1.6x areas before earnings.  If it does, I may buy back some.

Besides getting hit by $KGJI, I also got slammed by $PXD.  Price pierced thru both the 79 & 89 MA support lines so I had no choice but to unload 80% of my position to cut losses.  Without the support, there is a long way to go down.

If price continues to head south tomorrow, I’ll dump the rest of my position and watch for bounce at a much lower price in the future.

$GMCR looked like it was finding support b/w $59 & $60 on the weekly chart..

If the weekly 89 XMA could act as support, it might bounce from here.  Thus, I bought a starter position.

While I was getting slammed by $KGJI and $PXD, I got a lift from $GALE.

Price continued to head higher and I added more when price took out the Oct 3rd high.  Next target is $3.00.

I’ve been watching $AUDC and my last attempt was stopped out.  Today, price looked like it might bounce from here.

The green bar today convinced me there is a chance price could climb back up above the 79 & 89 MA support lines.  However, if it go down tomorrow, I’ll dump it for small loss because the 79 & 89 have become resistance.  I only bought a small starter position to test the water giving that price is below the 79 & 89 MA lines.

$CERS chart looked almost like the $AUDC chart so I added a bit more to build back my position.

$LRAD was the saving grace today since together with $GALE, it brought my portfolio up despite the losses from $PXD and $KGJI.

Look at that big green bar with higher volume.  Not to mention that both indicators below are also pointing up.  Perhaps there will be news soon to take this one even higher.  Pay attention to how price bounced off the 79 & 89 MA lines consistently here.  Magical!

Current holdings:

LRAD, KNDI, GALE, CERS, AMRN, GMCR, TINY, KGJI, PXD, AUDC and 26% cash.

My 2 cents.

The market had a neutral day today.  It didn’t have much action at all.

Due to the three days settlement rule, my 37% cash were still locked up today so I couldn’t do anything.  Gawd, how I wished I could add to $KNDI!

$KNDI bounced back due to news on delivering four-passenger pure EV to the public EV sharing system in Hangzhou.  While 200 cars are not a lot (for now), it definitely reflects the beginning of the business trend.

Today up bar gave the previous bar low right at the 79 & 89 MA support lines a high probability of an interim low.  If price can take out the Nov 5th high of $7.11, we will have another confirmed change in trend to the upside.

$GALE continued to head higher.

I like the fact that it took out the high of Nov 6th @ $2.44.  This added to the confirmation of an uptrend.  It doesn’t hurt that both indicators below the bars chart are still pointing up.  Next target is to take out the Oct 3rd high of $2.58.

$KGJI was still struggling to maintain altitude despite gold price still being down.

Price was able to close a bit higher and above the 5 and 15 MA support lines.  I like to see the 5 MA crosses the 15 MA this week before Friday earnings report.

$PXD was still struggling and corrected a little bit today.

Despite the down day, it is still trading above the 79 & 89 MA lines which I like to see hold.  We will find out this week.

$CERS was disappointing today with a down day.

I took comfort that I only have a standard size and not the “load the boat” position.  I will hold for the bounce and when it bounces, I’ll add more then.

$LRAD was as disappointed as $CERS.

Nevertheless, I take comfort that price is still above the 79 & 89 MA support lines.

$AMRN had a minor correction after the gapped up Friday.

Basically, I’m still holding my position from Friday.

Current holdings:

LRAD, PXD, KGJI, GALE, KNDI, CERS, AMRN and 37% cash.

My 2 cents.

Market  had a big rally day.  Good thing I sold the $SPXS the day before to lock in profit.

$AMRN opened higher due to Joe Z. more assertive attitude on appealing to FDA to reinstate SPA on Anchor.  While the odd of getting FDA to reverse their “negative bias” against $AMRN may be hard, I believe the grassroots movement of the many investors may bring enough noise for the FDA to review it once again.  Joe Z. did mention about a backup plan which involve adding insert and material to Vascepa to support off-label use.  That, to me, along with the continued positive feedback from clinicians and a steady increasing weekly script numbers are good enough for me to buy and hold from this point going forward.  Take a look at the chart:

If today bounce could maintain upside momentum, we might be seeing the absolute low for $AMRN at $1.36 from this week.  A good place to put a hard stop will be below $1.36.

$PXD opened higher and I added a bit more for the ride.  Unfortunately, price could not hold on the morning gain and began to gave back some near the end of the day.  I’m still holding my shares though.

The daily chart showed a green bar confirming the support of the  79 & 89 MA lines.  Next week we will know if today bounce is a dead cat bounce or not.  My stop will still be below the MA lines.

$CERS opened higher and I added a bit more as well.  As in $PXD, price could not maintain the morning gain and gave back some later in the day but a last hour rally brought the price back up.

Nevertheless, I do like the green bar today near the 79 & 89 MA lines (although it was more below than on top).  If price could rally back on top of the 79 & 89 MA lines, then the rally is not over yet.

$KNDI was another with a higher opening that could not hold the gain.  In fact, $KNDI was the only one that went negative into the close.

The good news is that price is still “on” the  79 & 89 MA lines.  Thus, technically, it is still standing on the support.  Although I bought a bit more at the open, I’m holding this one to see if the support will hold.

$KGJI was the only stock that opened down but ended up higher, albeit a tiny one, for the day.

I’m still holding my shares and will wait for the coming Friday earnings.  I like to think that $KGJI will have a blow-out earnings; otherwise, why bother to come to the US to do a road-show?  Why would they commit to a “Jewelry City” if they don’t see fast growth on the horizon?

$GALE had a nice bounce back today so I’m still holding my shares.

I like the fact that today bounce put price back above the uptrend line.

$LRAD bounced off the 79 & 89 MA lines nicely.

I like the bullish engulfment bar today which could mean an interim bottom giving the fact that this engulfment bar is right on top of the MA support lines.

A lot of my stocks are hinging on the general market continuing on its rally from Friday to create a supporting environment for the bounce to take off.  So, let’s see if we can rally to the Thanksgiving holiday from here.

Current holdings:

LRAD, PXD, KGJI, GALE, KNDI, CERS, AMRN and 37% cash.

My 2 cents.

Market started off the day on the upside but somehow slipped on the banana peel and fell off the cliff…

$CERS opened and proceeded to climb over $6 rather quickly.  Without hesitation, I bought a starter position.  It was a good thing I only bought a starter position ’cause price could not hold and eventually collapsed to the negative territory.  It was as though you were standing on the beach enjoying the sunshine and then found yourself standing on a quick sand sinking fast.  However, I believe this quicksand is not deep at all.  In fact, I think my foot found a hard floor to stand on.  Therefore, I may elect to rebuild my position with a much lower cost basis.

Next, I was eyeing $PXD for a possible bounce when price continued to head south.  There were two supports line on the daily chart:

The blue line represents the support created from the pivot highs of September; the second support line is the 79 & 89 MA lines. Notice also that this MA support lines is also intersected with the support of the early August high (see yellow line).  I bought a small starter position on the blue support line to see if it would hold. It didn’t so I wait for it to drop near the 79 & 89 MA lines.  Once it touched $185, I started to add for the bounce.  After I added, price did bounce but by the end of the day, it came back down near my entry point.  Let’s see if it will hold tomorrow.

Seeing $GALE also took off from the open, I bought back some position for the bounce.

Even though price did not maintain the higher price from the open, I like the fact that the price did not continue the waterfall action from yesterday.  My main reason for getting out yesterday was due to concern that price would continue to take out yesterday low from the downside momentum and take out the support lines of 5 & 15 MAs.  It didn’t happen, so I was glad I bought back some today. Did you see how the low of today bar still stayed on top of the 5 & 15 MA lines?

Next, I bought back some $AMRN for the earnings bounce.  However, I got cold feet thinking too much about the potential heavy cash burn rate and that Joe Z. might fumbled on the CC call that might brought another waterfall action.  Well, it turned out I was worried over nothing.  I will look to buy back some tomorrow morning.

$KGJI bounced back today and put a pause to the downside momentum.  I like to see next Friday earning report to show surprise blow-out earnings that will bring an upside rally from here.

Edit: I forgot to mention that I sold $SPXS to lock in profit. I figured tomorrow may be an up day.

Current holdings:

LRAD, KGJI, PXD, GALE, CERS, KNDI and 47% cash.

My 2 cents.

Market was up today but…

the stocks on my quote machines were all red!

Granted that lot of them were high beta stocks; but still when I saw that many red quotes, it usually meant the first leg of cashing out.

I was getting slaughtered today since practically all my stocks in my portfolio were being sold down.

It all started normally with DOW up nicely at the open.  Since I reviewed the charts of $GMCR and $AUDC the night before, I bought these two stocks after the market opened.  On top of that, I even added to $PXD. All were fine and dandy until I was stopped out of $PXD on my new add.  That was quick!  And before I knew it, the rest of my $PXD was stopped out as well.  Good thing I placed stop ’cause price continued to head southbound after I was out.

Then both $GMCR and $AUDC began to sink underwater right away.  Seeing the speed of the fall, I immediately placed a stop below the lower opening range and was promptly stopped out not long afterward.  I waited till the closing bell before I sold $AUDC to cut losses.

I also bought some $AMRN for the bounce after open since price was going up.  Even this one could not maintain bounce despite the fact that price had come down so far already.  I dumped it immediately to avoid compounding my already large realized losses.

Next, my moment of joy seeing $GALE opened high and reached over  $2.4x was short-lived.  While I was busy managing the losses of my other stocks, I was surprised to see the turn of event on $GALE.  Seeing price was hitting the price of my last add, I immediately unloaded 2/3 of my position to lock in whatever balance of profit I still had.   Later, I decided to sell the rest since the red bar on the chart did not look appealing at all.

$CERS was no better, Once I got into selling mode, cutting losses became a force of nature.  I didn’t have to think about it.  All I have to do was to look at the chart and I knew what I had to do- sell to cut losses.  I sold all my $CERS position before it went under $6.

$KNDI was showing a lot of fight to maintain the $6.8x level against the gravity but failed at the end.  By the time I sold $CERS, selling $KNDI seemed effortless.  Since I like $KNDI for the long-term, I decided to unload 2/3 only.

The only two stocks I didn’t touch are $LRAD and $KGJI.  For the reason that the executives from $KGJI will be in the US to do the road show and a possible “fantastic” quarter in earnings, I decided not to sell this one.  And for that, I took heat with today downdraft since it is a fairly large position.

$LRAD is a long-term hold and I already learned my lesson last time from having to buy them back at premium.  As with $KGJI, I’m taking heat on this one as well by not selling down my position.

To supplement my bearish sentiment, I bought a starter position on $SPXS and later added more before closing bell.

In summary, for today, every single stocks in my portfolio went down.  Oh well.  Moving on.  The bright side is that I was able to cut my losses for most of my stocks before the continuation of waterfall price action.

Current holdings:

LRAD, KGJI, KNDI, SPXS and 63% cash.

My 2 cents.

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:

LRAD, KNDI, GALE, CERS, KGJI, TINY, PXD and 27% cash.

My 2 cents.

Market went up today.

I didn’t do much today except to add to $KNDI and GALE since they were both up in the morning and were able to stay up till the close.  Later on, my limit order to buy back some $CERS at the price I sold last Friday was filled; so I added some $CERS back as well.

I also bought some $TINY back.  It was a good thing I sold $TINY last Friday to buy $KNDI giving that the latter went up and the former went down.

$GALE action today gave me back some confidence that price would not collapse.  When you look at the chart more carefully, you will notice that although price action went down last Friday, the low was simply touching the daily 89 XMA which served as a support.  In hindsight, I was too concerned with price taking out the previous day low and closed below the 5 & 15 SMA lines with the 5 SMA pointing down.  Note to self, let prices test the longer term 79 & 89 MAs support first before unloading most of the shares.

Take a look at the daily chart below:

Did you see how price touch the 89 XMA last Friday?  I like the fact that price closed above all the MAs today.  Let’s see if momentum can carry on higher this week.

Next, $KNDI had a nice bounce today.  Take a look at the chart below.

Price took out the resistance from the low of Oct 9th as well as the high of last Friday.  My instinct of selling $TINY to buy $KNDI was correct.

$TINY, on the other hand, was a bit disappointing since price came down to touch on the trendline.

The good news is that it has not penetrated the trendline yet.  There is still a chance that price will bounce back up the way $GALE has done today.

I bought some $CERS back at the price I sold last Friday with limit orders.  Although price closed below Friday close, the chart still looks like a good bounce.

Did you see a higher high and a higher low?

$KGJI was still struggling to maintain buoyancy but I gave it credit for being able to close right on top of the 5 and 15 MA lines.

Notice that the 5 and 15 were converged together and I would like to see the 5 crossed back up soon.  The momentum indicators below, however, were showing sign of a possible bounce due to the lines pointing upward from below.

$LRAD was slightly down but it came back from having penetrated the 15 MA line.

The 5 MA was turning down a bit but that would be a normal and healthy minor correction.  The ideal action would be for the 5 MA to touch on the 15 MA line and then bounce back up with price making new high.  Did you notice that both indicators below are still showing positive upward momentum?

Due to a mixture of down action on half of the stocks, the portfolio only gained a small percentage gain.

Current holdings:

LRAD, KNDI, AMRN, CERS, GALE, KGJI, TINY and 31% cash.

My 2 cents.

Market had another yoyo day which took the price underwater and then took it back up to see the sky.

Somehow today, the market got me thinking that a melt down was about to happen.  I began to unload position to raise cash and reduce risk.  I even bought $SPXS to hedge against my other position.  But it was all for naught ’cause market did not melt down and price went back up.  Oh well, I took my losses on $SPXS and moved on.  The only thing that hurt me today was not the loss that I took from $SPXS but the loss of the utility of my cash after I got out the same day.  Having bought a decent size, all the cash was locked up on the three days settlement and I could not use it to buy back the shares I sold earlier.

Yes, I have cash account only ’cause it is a protection against my own rare moment of insanity when I’m overly exuberance. Think about it, the three days settlement lock-out can be used as a circuit breaker to force you to take a step back and reevaluate.

First, I got out of $AMRN when it took out the lower opening range.  Again, I sat back and watched.  This time, the sellers were able to push the price below $1.60 but only for a short time.  When price bounced back and stayed “rigorously” above $1.60, I began to buy back for the bounce.  By day close, price closed near my entry point.  Again, I’m holding to see if there will be a bounce next week.  My “obsession” with $AMRN has to do with the fact that I’m taking Vascepa now and I can “feel” the benefit I receive from taking it.  So, it is my belief that, eventually, the health benefit of Vascepa will soon become known which will then drive the weekly script numbers higher.  So, I’ll continue to “find” the bottom of $AMRN without adding to my loss here. That is the reason why you see me getting out as soon as I see the trend is not going my way.

$CLIR, and $NCTY, both low float stocks were also my target for dumping since these are the ones that can go down fast in a melt-down.  I don’t understand why no one wants to sign deal with $CLIR despite its multiple news on lowering pollution emission on “duplex technology” burners.  It has been over a year since they’ve been shouting their superb emission control.   I guess the only way anyone will sign up to use their technology is when they are being forced to do so by the new regulation.  When will that happen? Until then, $CLIR will just bounce around until someone buy them out or dilute themselves to raise cash.

$NCTY was an instinct play and I didn’t feel the need to keep it; although the chart looks good for a bounce next week.

$GALE took out yesterday low and I lost my confidence in this one.  I was expecting it to go up from yesterday but instead it went the other way around.  I sold 2/3 of my position initially and then the rest later when I was anticipating a melt-down.  Later, I bought back some for the bounce.

I also reduced position on $CERS twice to reduce risk.  By day close, I am holding only 1/3 position.

Due to my cash being tied up from buying and selling $SPXS, I needed cash to add to $KNDI position because I could feel the upward momentum happening.   Looking for position that I had for more than three days, $TINY footed the bill.  Seeing that price wasn’t going anywhere and that $KNDI offered the best upside next week than $TINY, I decided to sell $TINY to raise cash to buy $KNDI.

Take a look at $KNDI 5min chart below:

Did you see how price jumped over the 79 SMA and then proceeded to take out the 89 XMA as well? That was when I started to look to for cash to add more. Look at the daily chart below:

Did you see the hammer candlestick chart? I like to see today high takes out by Monday next week to confirm an upside momentum.

Due to losses from $GALE, $KGJI, $LRAD, my portfolio gave back gain from yesterday.

Current holdings:

LRAD, KNDI, AMRN, KGJI, CERS, GALE and 50% cash.

Someone asked a question about why I don’t use or mention volume, below is my answer:

Thanks for the excellent question. If you’ve been reading my daily journal, you may notice that I trade in and out of my position based on the momentum of the stock during the trading hours. Sometimes after I sold, the downside momentum slowed down and began to reverse; if I liked the stock and I still had cash (for not being locked out by the three days settlement. I opted out of margin account ’cause I didn’t want the temptation to go overboard), I would buy the stock back if the daily chart still had an uptrend bias.

Volume, the way I see it, is a lagging indicator.

All stock start off the day with volume (light or heavy). I could sell in the morning with light volume and then the waterfall price action began with heavy volume. So, if I was to wait for heavy volume on falling price before I started to sell, I would lose (or give back gain) a lot more. On the other side of the coin, you can have heavy volume taking the price down (a highly motivated seller from a hedge fund, etc) and then only needs light volume to drive the stock back up. So, who do you believe? the heavy volume in the selling or the light volume in driving the price back up?

I don’t believe either one that is why I trade the way I do. Get out, nothing happen, I buy back. Sure, sometimes, I paid a premium to buy back but that was better than getting caught in a quick downdraft. And sometimes, I get out, price keeps going down on heavy volume, price stabilizes, I buy back at cheaper price.

I know trading text book often mentioned the value of using volume to monitor the strength of the trend; from my experience, the ONLY time I find volume to be an effective tool is when it is used in conjunction with several candlestick top or bottom reversal pattern.

For example, if there is a super high volume on a hammer candlestick after three to four down days, the odd of calling a bottom is much higher when price confirms the bottom by taking out the high of the hammer candlestick the next day. Nevertheless, I’m satisfied even if the volume is average when facing the potential top or bottom candlestick reversal pattern. Having a super volume to go along only make me salivate more, but it won’t affect my decision making regarding buying or selling based on the chart pattern; that is why you don’t see me mention volume unless it stands out so much that I’ve to mention it.

The way I see it, using volume is no different than using basic strategy when you play blackjack at the casino who uses seven decks of card in the shoe. With that many decks of card, the benefit of the basic strategy is diluted to the point of having minimum impact to your play.

Thus, I prefer to use the logic behind the game of musical chair to make my buying and selling decision over volume.

If you are referring to low float stock with low volume such as $NCTY. I play these with the understanding that I can be “stuck” if volume isn’t there for me to get out without getting hurt badly. For these type of low float stocks, it is a double-edge sword that can cut you deep quickly or give you fast and furious gain if you “remember” to take your profit and run. That is why sometimes you will see me saying something like “took my profit (or loss) because there was a large bids for me to take” in my twitter tweet. But most of the time, I try to stay away from these low float stocks unless the fundamental story tickles my interest.

Hope it helps.

Market played yoyo today.  Up above the water and down below the water…

$AMRN opened neutral and then headed lower.  And then it headed even lower and before you knew it, a waterfall ensued.  For some reason, $AMRN become the most “shortable” stock.   I watched on the sideline until price hit $1.60.  When I saw that it could not go below $6 and began to bounce, I began to start buying for the bounce.  I loaded up on the low $1.6x and price bounced as high as $1.78 before it came back down to mid-1.6x.  Oh well, I was still a bit in the money from this morning entry so I decided to hold to see what happen tomorrow.

$KNDI spiked up after the open so I thought today might be the bounce day and I added a bit more.  But no luck, price began to sink back down below the lower opening range and I was stopped out.  While it bounced back up in mid-day, I decided to leave it alone.  Good thing I left it alone ’cause price closed near the low of the day.  Let’s see what happen tomorrow.  I’ll be watching this one ’cause I want to jump back in when the momo begin to rally again.

$CERS and $NCTY were acting bearish after opening so I unloaded 1/3 position on both of them.  Later, $CERS began to bounce so I added back most of the shares I sold.  With $NCTY, I only added a small portion back due to its low float status.

Meanwhile, the hero of the day was my $LRAD position.  Take a look at the chart below:

Today bullish engulfment looked good.  Price closed above both the 5 & 15 SMA lines.  Due to the fact the $LRAD is my largest position, the mere 5% increase today carried my portfolio back up nicely.

My $GALE position is holding its ground and seemed to stabilized right in the intersection of the 5 and 15 MA cross.  Take a look at the chart below:

The good news is that price closed above the 79 & 89 MA lines. I’ve a feeling price will bounce hard soon.

Next is $KGJI.  Take a look at the chart below:

Isn’t it a beauty?  Price took out the high of the hammer candlestick bar yesterday and confirmed a possible interim bottom.  Once investors realize this one is a real deal when the executives from Kingold comes to the US, price can go much higher.  I intend to hold this one for a longer haul looking to capture the price in the teen.  All it takes is a couple of strong quarter-to-quarter growth and this one will just keep going up.  You know the executives from Kingold is coming all the way to the US just to tell us that their quarterly growth is getting stronger.

$TINY, like I predicted, bounced back up nicely today and thereby kept the uptrend intact.  Take a look at the chart below:

Price closed above ALL the MA lines.

Due to strong move on $LRAD, my portfolio recovered nicely from yesterday down day.

Current holdings:

LRAD, CERS, GALE, TINY, AMRN, KGJI, CLIR, APRI, NCTY and 24% cash.

My 2 cents.