Most of you all know that I’m long $AMRN from last year and have to sit through the drawdown all because FDA could not decide on the NCE (new chemical entity) status on the almost pure EPA chemical ingredient in $AMRN’s new drug Vascepa.  Month after month of no approval and with $AMRN taking the path to self-distribution of Vascepa instead of going thru the Big Pharmaceutical company, price continued to head south.  It was because I did not average down during the drawdown period that I could tolerate the temporary setback on my long-term position trade.

As in any price movement based on human emotion, there will come a point where a bottom or a top can be called on for a speculative play.  What most people don’t realize is that while picking bottom or top can be akin to playing with fire, it is actually a low risk trade if you’ve done your homework correctly.  Please refer to my past post on the art of catching a falling knife.

Remember this stock market wisdom- Buy low and sell high?

How do you propose to buy low when you are not trying to pick a bottom?

As I mentioned before, the only way I will add to underwater long-term position is when I play the added shares as a swing trade.  Meaning that I will have stops in place to protect myself if price head the wrong way.  These stops are non-negotiable; otherwise, I’ll just be kidding myself into averaging down to my core position.

Last Tuesday when $AMRN announced the FDA has accepted its Supplemental New Drug Application (sNDA) seeking approval for the marketing and sale of Vascepa^(R) (icosapent ethyl) capsules for use as an adjunct to diet in the treatment of adult patients with high triglycerides (TG >=200 mg/dL, price gapped up but turned around and headed south for a few more days.  I knew then that the bottom was about to set in.   While we won’t hear from FDA regarding the approval of this sNDA until Dec of this year, it is considered a game-changer catalyst that can propel $AMRN to be a very attractive take-over target.

There are support level from Dec 2011 low of $5.99 and price last week has dropped down to low of $6.34 before heading back up.  While I didn’t buy the swing trade position at the low, I bought them around $6.4x.  The way I see it, the risk/reward for the swing trade is excellent.  My stop was below $5.99 and I’m only risking about $0.45 cent per share for a return that has the potential to be multiple times of the risk.

Below is the weekly $AMRN chart.  Notice that last week bar is a doji.  A doji at the bottom near a support has a high probability of forming a bottom.

Below is the daily $AMRN chart.  Notice that today price action has penetrated the downtrend bar.

Needless to say, I’m close to double-up my position on $AMRN with my swing trade position.  If price never look back, these swing trade position will become part of my core position.  Perhaps, this drawdown is really a gift in disguise for me…

My 2 cents.

I bought $MELA at open because it took out the resistance from early March and I continued to add as price continued to climb.

Take a look at the daily chart below:

Now, take a look at the weekly chart below:

The weekly chart should give you the potential of this movement giving the fundamental of this stock, IMO, is lining up the duck so to speak.

Below is the business profile of $MELA from Yahoo Finance:

MELA Sciences, Inc., a medical device company, designs, develops, and commercializes a non-invasive point-of-care instrument to aid in the detection of melanoma. The company’s principal product, MelaFind, consists of a hand-held component that employs high precision optics and multi-spectral illumination; a proprietary database of pigmented skin lesions; and lesion classifiers, which are mathematical algorithms that extract lesion feature information and classify lesions. Its hand-held component emits light of multiple wavelengths to capture digital data from clinically atypical pigmented skin lesions, which is then analyzed utilizing classification algorithms trained on its proprietary database of melanomas and benign lesions to provide information to assist in the management of the patient’s disease, including information useful in the decision of whether to biopsy the lesion. MELA Sciences, Inc. offers its product to dermatologists. The company was formerly known as Electro-Optical Sciences, Inc. and changed its name MELA Sciences, Inc. in April 2010. MELA Sciences, Inc. was founded in 1989 and is based in Irvington, New York.

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My 2 cents.

This is not a recommendation to buy but simply my documentation of why I bought this stock.

I’ll let the charts tell the picture.

Below is the weekly chart for $PXN (ETF for Nanotech)

Below is the weekly chart for $TINY

Notice price was bouncing off the floor.

Below is the daily chart for $TINY

There are the usual resistance; but in time, you cannot avoid the emerging of the nanotechnology to change every aspect of our technological life.  There is a new tech world out there that will bring science fiction into reality sooner than we think…

Disclosure: $TINY is in my long-term position portfolio.

My 2 cents.

I joined RaginCajun this morning in $BCRX when I saw price action was acting “fizzy” after open.  Not to ignore my intuition, I bought back $BCRX and continued to add as price continued to climb.

Take a look at the $BCRX daily chart below.  You can see it broke out of the symmetrical triangle today.  Price action never breaks below the 89xma and both momentum indicators are also turning up.

Take a look at the weekly chart.  Did you see the cup & handle pattern?  A breakout of the cup & handle on the weekly chart kick off a good rally here.

My 2 cents.

I joined The Fly and bought $RBCN because the chart looks good for a breakout run.

Take a look at the $RBCN daily chart below.  Did you see the resistance around $6.78 that goes all the way back in early December 2012?  Price action today took out that resistance and is looking strong to gun for the next resistance at 04/10 high.  The two momentum indicators are pointing up and I’ve all the technical reasons to give me the confidence to jump in at this level.

Take a look at the weekly chart below.  I like the strong green weekly bar being developed this week.

Fundamental speaking, I like the fact that $RBCN manufactures components for the LED lighting industry.

Below is the business profile from Yahoo Finance:

Rubicon Technology, Inc., an electronic materials provider, develops, manufactures, and sells monocrystalline sapphire and other crystalline products for light-emitting diodes (LEDs), radio frequency integrated circuits (RFICs), blue laser diodes, optoelectronics, and other optical applications. The company fabricates sapphire substrates and optical windows from the boules and sells them in core, as-cut, as-ground, and polished categories in two, three, four, six, and eight-inch diameter wafers in C, R, A, and M planar orientations. Its products include six-inch polished sapphire wafers for use in LED applications and in silicon-on-sapphire RFICs; two through four-inch diameter sapphire cores for making wafers for use in LEDs and blue laser diodes; and sapphire products that are used for windows and lenses in military, aerospace, sensor, and other applications. The company also sells optically-polished windows and ground window blanks of sapphire and various fluoride compounds, such as calcium, barium, and magnesium fluoride. Rubicon Technology sells its products directly to customers in Asia, North America, and Europe. The company was incorporated in 2001 and is headquartered in Bensenville, Illinois.

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My 2 cents.

I’ve been stalking, trading, positioning $SZYM with more headaches than any other stocks I’ve traded.  Now, I think I’m at a comfortable position with the size I want giving current price action.

Take a look at the daily $SZYM chart below.  Price took out the high of 04/11 and is about to take out the 89xma as well. 5ma crossed over 15ma and the two momentum indicators are pointing up.  On top of all the technical supports for a bullish bouncing stance, my gut/intuition tells me this one is about to take off.  (caveat: my gut/intuition does not possess the property of a divine crystal ball, so take it as a grain of salt please.)

Now, will I be proven wrong again?  From my track record with $SZYM, I’ve been proven wrong time and time again.  Like a roulette game, after so many red, black should turn up any time now, right?

My 2 cents.

Today $SPY rally continues on and price action is now above the 2007 high once again.  On top of that, price action is now back over the up trendline that has started from 02/26 low.  However, I like to see price action takes out the previous high of 04/11 to be considered a full-on bull trend.

Take a look at the $SPY daily chart below:

Now take a look at the monthly $SPY chart again below:

Did you see the forming of a spinning top candlestick for the month of April?

Let’s take a closer look.

A spinning top at or near critical historical resistance such as 2007 high can be a significant tell-tale sign.  I will be more cautious going forward from here in light of May being the month of patterned down month.

Below is the primer for Spinning top candlestick pattern:

Definition of ‘Spinning Top’

A type of candlestick formation where the real body is small despite a wide range of price movement throughout the trading day. This candle is often regarded as neutral and used to signal indecision about the future direction of the underlying asset.

Investopedia explains ‘Spinning Top’

If a spinning top formation is found after a prolonged uptrend, it suggests that the bulls are losing interest in the stock and that a reversal may be in the cards. On the other hand, if this formation is found in an defined downtrend, it suggests that the sellers are losing conviction and that a bottom may be forming.

Cautiously optimistic is the way to perceive current rally.

My 2 cents.

$AAPL.

I got stopped out earlier in the morning during the downdraft but re-entered my position on $AAPL after the dust was settled; therefore I’m still long $AAPL.  If the Morning Star bullish pattern continues to hold until day close, we “may” find the bottom on $AAPL.

Take a look at the Morning Star pattern (inside the circle).

Of course, $AAPL earning report after close tomorrow will be the deciding point of $AAPL’s future direction.

Below is the primer on Morning Star Candlestick pattern:

Morning Star

My 2 cents.

I like $GLUU here.

As you can see from the daily $GLUU chart below, it is bouncing off the  Andrew Forks mid-line  with two momentum indicators turning up.  While the downtrend line still needs to be broken to the upside to be even considered a possible trend change.  I’m playing this one more aggressively because I’m sensing a bounce here.

Below is the $GLUU weekly chart.

Last time I got into $GLUU, I bailed out too soon and missed the gap up later.  Will I catch the ride this time?

My 2 cents.

Sound like a steam engine of the north-bound train is kicking back into action.

Most of the charts I’m watching now act like they are coming back to life.

The $SPY daily chart below shows that, again, the Year 2000 high is a strong support. Price again bounces off this support instead of continuing the downdraft from yesterday.

The way I see this, we are still in a consolidation range inside these two multi-year highs. Because one successful attempt was made to break out of the 2007 high with several days over it before coming back down inside the range as opposed to zero day breaking down below the 2000 support, I’m cautiously optimistic that the bull is still alive and kicking. Of course, this is a matter of personal interpretation of the chart.

Nevertheless, I see enough today to jump back into stocks I’ve previously disposed of before.

My 2 cents.