03-12-2014 Trading Journal

Market went down under water in the morning but decided to come back up for air by day close.

Price closed right back at the upper range.  If tomorrow is an up day, we are back on heading up.

At first, with market heading down, I sold $SVA to reduce my risk on biotech exposure.  I also sold $CERS even though it was a smaller position.  By closing time, both climbed back up to neutral.  I’ll wait a day or two to see which way the wind blows before jumping back in.

Although I missed the spike-up on $TINY, I thought I would buy in today and see if the rally would continue.  After I bought, then I did some digging to see what was the excitement on the D-Wave quantum computer.  Based on my limited reading, it was my conclusion that the QC is not ready for prime time just yet.  Thus, I sold my shares I bought in the morning for losses and moved on.  I didn’t want to ride this one back down to low $3 and then get stuck again.  Who know, perhaps it will continue to move up; but I trade only if I feel right about it.  If I don’t feel right, I get out even though I could miss a run-up.

Except for $SEED, the rest of my positions were in red.  Thus, my port continued to drop a notch.

Current holdings:

LRAD, SEED, MZOR, CARA, KGJI and 31% cash.

From my other account:

$FITX continued to correct a bit more.  As long as we are waiting for the construction of the facility to be complete and for the Health Canada permit to be issued, $FITX would be subjected to volatility.  One must learn to live with this uncertainty in this highly speculative investment. If you choose to be in this stock, then you must take the heat when it comes.

My 2 cents.

Market played the diver today by going up the springboard in the morning time and then jumped into the water not long afterward.

Price is still around the upper range of support so I would call this a healthy correction so far.

$SEED opened strong and I bought back the 40% shares I sold yesterday.  Everything was going perfectly until the mood changed in mid-day.

Since price is still above support, I decided to hang onto the shares I added back today.

$CARA also did a reversal after a stellar morning spike-up.

So far, the chart still looks bullish with a healthy dose of correction..

$MZOR performed nicely considered that most every one did a reversal.

Price is still within the top range of the consolidation area.

$KGJI was still having problem breakout out of $1.85 resistance.

I added back some $KGJI I sold yesterday due to the morning surge.

$SVA,, like everyone, enjoyed a strong morning so I bought a medium size position looking for a bounce.

Price did not turn negative and the close was higher than yesterday.  So far so good.

$CERS looked like it was bouncing off from yesterday doji bar so I bought a starter position to test the water.

Price turned negative for the day.  I will see if the $5.77 previous low @ Feb 3rd will hold before deciding what to do with my small position.

$LRAD remained neutral and range-bounded.

As long as it is not trending back down, I’m happy.

Basically, my port was in neutral zone after adding all the pluses and minuses together.

Current holdings:

LRAD, SEED, MZOR, CARA, KGJI, SVA, CERS and 22% cash.

From my other account, I was disappointed that $FITX traded lower while most other cannabis stocks went higher.  Oh well, what can I say but to remind myself to be patient.  Rome isn’t build in a day or a week.

My 2 cents.

The market started off negative and later recovered some by day close.

Notice that price bounced off the upper range of the consolidation area.

At first, I was going with the market momentum by shorting via $TZA and $FAZ; but both turned out to be non-performing due to lack of market follow-thru with the waterfall action.  I got out with small losses.

Due to negative market action in the morning, I took it upon myself to reduce position size on $SEED and $KGJI by 40%.  Nothing really happened except that $SEED dropped a bit more below my exit point.  I’ll be buying back these shares if momentum is going back to the upside.

$SEED dropped below the support today.  There is another support at the 15 MA line at $2.50.

$CARA also dropped at the open and took out last Friday low.

However, I wasn’t concern ’cause I know price can spike back up really fast due to the low float status.  Basically I can create a new low if I dump my shares at the market; but I surely will not be able to buy them back at the price I sold for ’cause I will drive the price back up really fast if I try.  Thus, I’m not trading this one. Chart looks good for a bounce from here.  Price needs to take out today high to confirm a bounce.

$MZOR continued to meander nowhere.

But it was good to see price hang around the upper part of the consolidation range.

$KGJI was following $MZOR playbook.

Price was still having a hard time breaking out $1.85 resistance.

Good to see $LRAD bounced ’cause that means it is staying inside the consolidation area instead of breaking out to the downside.

Price is inside the range and bounced off the 15 MA line.

Due to correction from $SEED and $MZOR, my port dropped another notch.  Now, I’m barely above the milestone high.

Current holdings:

LRAD, MZOR, CARA, SEED, KGJI and 38% cash.

From my other account:

$FITX appointed Ms. Anndrea Hermann as President of the newly acquired Hemp Technologies company.  I googled Anndrea and was pleasantly surprised to find that Anndrea practically dedicated her whole adult live working with hemp.  It is an excellent move to have someone with high level of expertise on hemp to take $FITX to the next level in industrial hemp business.  Since the Federal law now allows the production of industrial hemp with its recent agricultural bills, I can see $FITX is laying the necessary ground work to become a key player in the hemp and medical cannabis market.

Price came back down a bit after an initial up move.  This one will require a lot of patience…

My 2 cents.

The market had a wild swing during the day but closed the day neutral.

While it was a red bar, the overall trend is still up.  Notice that since beginning of February, there was only two significant corrections, 02/19 and 03/03.  This can only mean that we are in a kick-ass bullish trend or we are due for another small correction soon.

And this is the basis of my concern that I no longer feel the conviction to hold on to my $KNDI shares.  A collection of recent events had somehow changed my strong conviction on $KNDI into a cautious “going for a quick buck” speculation.

What recent events?

Remember that time I bought $XONE in December @ low $5x.xx and rode it all the way to high of $70.xx+ in mid-January and then watched a whole chunk of my unrealized gain evaporated into thin air in the name of “bullish conviction”?  This experience taught me that I must temper my conviction with a dose of short-term reality. This lesson was further confirmed by my most recent gave-back of my medium size unrealized gain on $CERS going into earning day.

Reaching my milestone target is another event that put me into cautious mode.  I do not want to fall below this milestone high so early in the game after just reaching it.  Selling out my largest position (30%+ of my port) to lock in gain was the only way to ensure that my milestone high would not be out-of-sight if a correction hit $KNDI b/w now and March 17th reporting day.

Since $KNDI had climbed so fast and is making new high approaching the March 17th reporting day, I’m becoming more leery of holding such a huge amount of unrealized gain gambling on the earning outcome.  In other words, if I’m going into this earning date with my unrealized gain on the table, I’m practically betting this whole $KNDI pot (principle and unrealized gain) on the earnings result.  So  I asked myself if I am ready to push all my $KNDI chip in the center of the table?

No.

The possible “island top” was all I need to find an excuse to sell $KNDI to lock in profit last Tuesday 03/04.

In an nutshell, I lost my “nerve” on $KNDI.

But that is just me.  $KNDI could surprise and continue to move much higher and those who have the gut to bet big will surely be rewarded for their risk-taking.  I believe I was rewarded very well for my gut and conviction of buying at the low $5 and rode it all the way to $18.xx since the latter half of 2013 with a double-down in late December after Geely’s announcement on the EV version of the London’s black taxi.

For now, $KNDI is just another possible speculative bet that warrants a “guerrilla” type of trading- in and out with small to medium size position for a quick swing trade.  With more update fundamental news, I may again become a longer-term holder.  One thing I learn is that today stock market environment requires us to combine nimbleness and a long-term outlook at the same time.  Think of a jaguar following the herd jumping in and out of the herd for the kill but still follow the herd for the next possible kill.

I actually went in with some starter position on $KNDI today but chickened out at breakeven when I realized I didn’t want to hold the position over the weekend.

Both $CARA and $LRAD were taking hit today so my port suffered another small setback.

Since $CARA position was only 1/3 of my original $KNDI size, My conviction of its disruptive pain-killer technology can handle the drawdown.

So far, all I’m seeing is some normal price correction.  Still holding my shares long and strong despite taking heat.

$SEED was practically neutral which was good enough for me.

Notice that price is still above the support area. Still holding long and strong.

$KGJI bounced slightly today.

Perhaps, next week price will take out the $1.85 resistance once and for all?

$MZOR performed well today coming back from a bearish attack to close only slightly down.

Price is still trading in the upper-range of the consolidation.

$LRAD was still stuck in its own consolidation range.

Today was another set back but I like to see price bounce tomorrow to stay inside the recent consolidation area.

Due to $LRAD and $CARA correction today, my port was down another notch but overall is still above milestone high.

Current holdings:

LRAD, SEED, MZOR, CARA, KGJI and 28% cash.

From my other account:

$FITX broke thru the resistance today.

Although it fell back from the high of the day, it still closed above the previous resistance which has now become support.

$FITX announced that it acquired Hemp Technologies Ltd.  I believe that $FITX is laying on the correct brick to build the company up. To me, it makes perfect sense.  After harvesting the 1.3 million pounds of medical cannabis, those non-bud (leaves and stems) can be used for industrial hemp.  Nothing go to waste.  What perfect synergy!

Still holding long and strong.

My 2 cents.

Market was up slightly today and the general direction is still up.

Notice that volume was lower than average for the last two days.  Can price continues to float upward from here?  We will see.

I added to $KNDI due to a strong opening; but when price started struggling to stay within the opening range, I decided to put a stop below the range.  I remember reading that some outfit projected a target of $20.xx; so I asked myself, “we are at the target, so who else is buying this up?”  Apparently no one since I got stopped out when price fell thru the lower opening range.  Luckily I still had some profit from yesterday buy that despite my adding this morning, I came out with a small profit.  Although I got out of my large position two days too earlier; I really can’t complain about the profit I was able to capture.  Stock speculation is risky and no one can ever get out at the top or buy at the low.  We just need to stay true to our decisions without second-guessing ourselves because hindsight gives a different picture than the one we’ve envisioned.

$SEED took a tumble at the open when there were no news to hold yesterday gain.  I did not sell ’cause my original objective of seeing thru the China’s decision on approval of the GM seeds has not changed.

While price came back down, it still stayed above the support (blue line). The good news is that $3 resistance had been broken, so I don’t see it as a hard resistance anymore.  Let’s see if there is a bounce tomorrow.

I sold $SVA today ’cause price fell thru yesterday low.

When I loaded up to swing for the fence, I expected price to behave upward with strong momentum.  And when price went the other way, I had no choice but to “get out of Dodge” before losses magnified to an unbearable point.

$MZOR bounced a bit today so I’m still holding.

Price is still at the upper range of the consolidation area so I’m not worried at this point.

$CARA corrected today but I decided not to sell any shares ’cause I believe this new pain-killer can improve pain-management drastically due to the lack of side-effects the opiate drug has.  So, I’m holding this for a possible buy-out from big pharmaceutical company or positive phase 3 result.

See how price closed above the 5 MA line?  Hopefully, it is finding support here.

Both $KGJI and $LRAD were practically neutral for the day.

Due to correction of $SEED, $SVA, and $CARA, my port gave back a chunk of gain from yesterday.  However, my port is still above my milestone level.

Current holdings:

LRAD, SEED, MZOR, CARA, KGJI and 28% cash.

From my other account:

$FITX continued to bounce back upward.

We may be seeing a V-shape bounce to take out the resistance @ $0.115 level.  As $FITX continues to show progress on the construction of the facility, price will continue to climb higher.

My 2 cents.

Market took a breather today after yesterday huge rally.  While it closed slightly negative, I considered it a neutral day.

Unfortunately, I believe there is a server crash at TC2000.com for I couldn’t login after upteen times; thus, I’m going to have to write this journal without chart.

Well, $KNDI opened higher and closed higher.  What could I do but to kick my own behind?  After reviewing my thought process yesterday that prompted me to sell for profit, I realized I’d forgotten to remind myself of my past errors in selling too soon ($LNG being an example).  Yesterday was not the first time I was tempted to take profit.  In the past, I was quick to remind myself of the missed trend plays on $LNG and that was good enough for me to pull back my trigger-finger and sit on my hand.  Somehow, yesterday, that reminder was absent and I allowed my fear of giving back profit that would put me back below the milestone target to affect me.

But then, all is not lost.  What I’ve really given up is today range of profit which is pale in comparison to my lock-in profit I took home yesterday.  I did, however, buy back some starter position (about 1/6th the original size) at the low $19.xx.  Furthermore, it is time for me to re-balance my port due to $KNDI being way over-weighted.  Today, I was able to use the available cash to spread it around $SVA, $KGJI, $SEED, and $CARA.  I still have some cash tied up with the three-days settlement period which when release, I will use it to buy more $KNDI to bring its size back up but it won’t be the same size as before.  The end result will be that I’ve seven hi-beta stocks that are evenly distributed in size; nevertheless, $LRAD will remain the largest position of all.

Although I missed the $KNDI rally that could take my port another notch up; my port was still able to move much higher thanks to $SEED incredible 34% jump.  In other words, $SEED saved the day!

I believe that China may be leaning in favor of allowing GM (genetically modified) seeds to be used in China agriculture.  This is probably why $SEED went ballistic today.

Out of the seven stocks, only $MZOR was down today; thus my port continued onward to make new high.. As in chart psychology, now that my milestone resistance has been broken, I no longer has the psychological barrier on the new level.  I’m ready to move on to the next level.

Current holdings:

LRAD, SEED, SVA, MZOR, CARA, KGJI, KNDI and 8% cash.

I’ll be looking to buy back more $KNDI when the 8% cash becomes available.

From my other account:

$FITX continued to move higher from yesterday huge bounce.  BECAUSE price was bouncing up instead of heading south, I allowed myself to add more $FITX today as a swing trade.  This means that if $FITX was to go south again, I’ll dump today add in a hurry but will hold the rest for the long-haul.

Overall, despite not having a lot of $KNDI around, I was still able to have an excellent up day.

My 2 cents.

Market staged a spectacular rally after a gap-up.

Look at the spike up!

$KNDI also followed with its own spike-up as well.

However, I’m spooked by the narrow range doji formation at the top. Although it has not been confirmed to be one, the doji at the top reminds me of the island top reversal pattern.   Thus, despite my better judgement, I made the difficult decision to sell all my $KNDI shares to lock in profit even though I like this one for long-term.

Another main reason I wanted to lock in profit today is because my port has finally reached a milestone in term of a specific target I’ve dreamt of achieving.  In a manner of speaking, I’ve broken my own “sound barrier” record.  As such, I like to see this new milestone frozen for a few days by locking in my biggest gain so that any temporary correction of $KNDI will not drop my port back below today high.

$MZOR was up slightly but I added some to round up my investment size.

Price is now banging against the top range of the consolidation.  Let’s see if it can breakout to the upside this week.

$CARA was also up today and it was fighting to stay above $22 all day but failed at the end.

At first, I sold some to lock in profit.  But the more I think of its potential as a pain-killer drug, the more I want to stay in with my trading shares; thus I bought back the shares I sold in the morning plus some before market closed.  Let’s see if this one can continue upward this week.

The rest of my positions provided minimum impact on my port.  Thus, today $KNDI, once again, took my port to a whole new level.  I’m sure I may regret getting out today but I need a rest to enjoy the view for a moment.

Current holdings:

LRAD, MZOR, CARA, SEED, KGJI, SVA and 32% cash.

From my other account:

$FITX fell off the cliff and even I found it disturbing for a moment.  Thanks goodness price bounced back up eventually.

See how price bounced off the 79 MA line?  Magical!  With such high volume to back up the bounce, the odd of continuing upward is high.

My 2 cents.

Market fell off the cliff today but managed to hang onto to the tree branch dangling above the consolidation range.

See how price closed back above the range?  I could see a bounce tomorrow.

Meanwhile, thanks to $KNDI and $CARA, my port made new high today.

$KNDI opened lower but bounced back to the surface rather quickly.

As you can see, the bear tried to push $KNDI down in mid-day but failed; price bounced back up to close near the high of day.  It was a nice looking bullish chart, you would think the general market was up today just by look at $KNDI chart.

My weekend research pointed me to $CARA.  It has a fantastic story of a pain-killer drug that is as strong as a morphine drug but without the opiate addiction side-effect.  Please pardon my pasting an excerpt from a contributor from SeekingAlpha:

The most exciting CARA compound is CR845, which is not a CB-acting drug. CR845 is unique because it acts on pain receptors in the same class as those acted on by morphine but it does not cross the blood-brain barrier, leading to significantly reduced side effects. This molecule is currently in Phase III studies for Post-Operative Pain, and had excellent morphine-sparing effects in Phase II results.

I couldn’t contain my excitement as I learned more about $CARA.  As luck would have it, due to negative market open, $CARA also opened down.  I jumped at the opportunity to build up a position while price was debating whether to go down more or to go back up.  I didn’t care if it would go down more ’cause I wanted to buy more.   As price began to climb back above water, I just kept on buying until I got the amount I wanted.

To my surprise, price began to climb much higher from my entry point during mid-day.  Although price gave back some gain from the high of the day, $CARA closed almost 13% higher for the day.

$SEED also performed admirably in the face of down market.

Price did bounce back from the support as I had predicted.  $SEED looks like it is going to go much higher soon.

Although $LRAD, $MZOR, and $KGJI all corrected a bit today, the gain from $KNDI, $CARA, and $SEED propelled my port to another new high today.

Current holdings:

KNDI, LRAD, MZOR, SEED, CARA, KGJI, SVA and 1.5% cash.

From my other account:

$FITX continued to head south and somehow, I wasn’t concerned at all.

Notice that price is getting near the 50% retracement area.  Currently, the heat I’m taking is being absorbed by the gain I made from $XTRM earlier before I got into $FITX.  In the back of my head, I somehow know that $FITX will pull through and get the facility build… but that’s just me.

My 2 cents.

The SPY took a tumble after reaching new high but then bounced back to close higher for the week.

From the chart, it all looks good.  Today was a pause day with a bias to the upside.

$KNDI took out the $17 resistance and made new high.

Although price closed below $17, it opened the door for further $17.xx.  In other words, The resistance was one layer weakened.

Regardless, $KNDI closed strong for the week.

See how high the volume was for the week?  While some may focus on how many cars $KNDI might have sold so far, I don’t think this is what drive the price up, I think it is the “potential” of multiple cities adoption of $KNDI car-sharing (vending machine style) programs that will drive the price.  Come March earnings, I believe people will look for the clue on number of cities signing on in the program.   Just take a look at some of the biotech such as $CLDX and $ISIS, look at their market cap compared to the revenues.

$LRAD looked good so far.

Despite a rough day fighting off sellers, it ended the day neutral.  Now, $LRAD just needs to take out the resistance @ $2.24 to move higher.

$MZOR closed higher a bit but did took out the upper range of the consolidation during the day.

I believe $MZOR will continue to climb from here since the recent earnings result was all good on the revenues increase.  I see more and more surgeons and hospitals adopting this robotic device to provide better efficiency and accuracy in spinal and brain surgery.

$SEED bounced higher but gave back all gain before closing.

The good news is that price still stays above support for now.  I believe traders and investors alike will buy the support for the next leg up.

$SVA was a bit disappointing ’cause price closed negative after breaking out of the consolidating range.

Nevertheless, price is now settling right on the convergence of the 5 and 15 MA lines.  Sometimes, this is a good support here.  Let’s see if price will bounce next week.

$KGJI continued to head south below resistance.

Although I’m taking heat, it was small heat.  But still, it was money tied up unproductively.  It hasn’t really gone anywhere even when $NUGT went higher.  I guess I just have to wait for the next $KGJI earnings report to see any big move here- up or down.  I’m voting for up, of course.

Due to a mixed batch of ups and downs on my six stocks in my port, I ended up with a neutral day.  But my port had a strong week that ended in a new high.

Current holdings:

KNDI, LRAD, MZOR, SEED, KGJI, SVA and 5% cash.

From my other account:

$FITX collapse after breaking down below $0.08 that caused panic selling.

My only thought at that instant was “why didn’t I wait a few more days before adding?”.

See how the daily bar closed with a hammer candlestick?  This can mean a “possible” bottom.  But price needs to close above today high next week to confirm the bottom.

Oh well, by sticking to my discipline of not averaging down, I stayed put.  When I said I was done buying yesterday it meant that I was done scaling in.  Anything purchase after that against a downdraft is considered averaging down.  Thus, I did not buy more today.  Still long and strong and I believe the facility will be completed and the permit will be granted by Health Canada.  Yeap, that is my conviction, right or wrong.

My 2 cents.

Market bent down a bit at the open and then jumped up into the air.  Up and away it went.

See how price went down to touch the upper range of the consolidation area (support) and then bounced higher afterward.

With SPY closed at all time high, my port is following the trend by making an all time high as well.

Thanks to the three big upside momentum on $KNDI, $LRAD, and $SEED which contributed to my port making an all time high today despite $CERS putting me one back step yesterday.

$KNDI chart looked much better today compared to the last two neutral days.

Although price did not make a new high from the this week, it was still a good green bar with an upward momentum.  We may see a breakout to new high tomorrow if the wind blows higher.

$LRAD made a strong upside reversal after opening on the downside.

Volume was also higher than average.  Potentially, there may be more steam behind this rally.  Look forward for this one to move higher.

$SEED finally took out the resistance and closed above it.

Although price fell back from the high of the day, I’m just thrilled that price remained above the resistance which will now be called support.

Both $MZOR and $SVA also moved higher but their dollar value in gain were relatively smaller compared to the three stocks above.

Again, $KGJI did not rally.  I’m beginning to feel that this one is dead money.  But I like to believe when the time comes, it will rise very fast; therefore, patience is required for this one.

Good thing I sold $HALO yesterday since price went down after-hour today due to earning miss.

Current holdings:

KNDI, LRAD, MZOR, SEED, KGJI, SVA and 5% cash.

From my other account:

$FITX sell-off seemed to be slowing down.

Notice that today was a short range doji bar which could mean a temporary bottom is setting in.  But this bottom needs to be confirmed by a higher bar tomorrow.  Let’s see if it will bounce.

My 2 cents.