The bull was actually meandering around eating grass… good grief!

But the good news is that price is still on top of the 5 MA line.

On the other hand, my port was having a great day!

$LRAD made a spectacular come back to approach $3. While price did not pass $3 yet, it may do so tomorrow.

From the daily chart, the up move today with higher than average volume could signify a potential explosion to the upside. This potential ballistic upside is very possible if $LRAD win one (or even both) of the orders from the two large Middle East cities for the mass notification systems.  Per previous earnings announcement, $LRAD is anticipating a response from one of the cities this month- November.

$DMRC gained back yesterday’s loss.

The green bar today put a reversal spin on the drops from the last two days.  If their mobile payment solution can get traction, this can go much higher.  Nevertheless, today bounce was also attributed to the upgrade by Cowen and Company.

I bought back $GALE after their earning report simply because their net revenues from the Abstral sublingual tablet had increased and I believe it would continue to increase thru out the year and beyond.

Price bounced back above the 15 MA line.  If this bounce can hold, I’ll hold; if not, I may cut losses quickly.

$ORBC was basically neutral for the day.  I was also stopped out of $NUGT at breakeven after I set my hard stop to my entry point when price opened down.

Thanks to $LRAD and $DMRC rallies, my port gained 4.6% for the day with YTD gain at 13.7%.

Current holdings:

LRAD, DMRC, ORBC, GALE and 12.5% cash.

From my other account:

Both $FITX and $MCIG bounced today; so I’m doing ok here.

My 2 cents.

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After getting out of the mud, the bull jumped into the river and swam pass the 79 & 89 markers into the bull territory.  The bull has come back home.

Price has convincingly crossed the 79 & 89 MA lines to the upside which is a strong bullish sign.

Today, I bought back $AMRN, $NUGT, and $GALE.

I like $GALE here due to a possible breakout pattern from the daily chart.

From the chart, you can see that price has broken out of the $2 resistance today. I’m sensing a momentum coming to take the price higher.  It is possible we may see $2.5 and $3 in the near future.  However, the potential upside is very depending on the upcoming earnings report on November 3rd.  I’m going to do some research to determine if I want to hold this one thru earnings.

I bought back $AMRN expecting a bounce.  I’m also committed to have some position in this stock just in case of any positive catalyst to pop this one back up.  And I want to be in the stock when it happens.  I’ve invested too much time, money, and heart-break to see this one take off without me.  So, even though I might have sold to cut losses, I’ll always find a point to buy back.

$NUGT is a stock that I’m trying to catch the bottom by jumping in and out to avoid getting suck into the black hole.  I do not want to forget it and then one day see it takes off like a rocket without me on board.  I don’t mind the multiple small losses I’m racking up ’cause once I’ve caught the bottom, this one will bring in more $ than the small losses I’m taking now.

$DMRC continued to march ahead.  The shorts had its fun so now it is the bull’s turn to drive the price higher.  This uptrend reminds me of the January uptrend which started from $20 and moved all the way to $36 without much of a correction.  Could $DMRC repeat this feat and beat the January price range by making new high?

With more retailers joining the Digimarc barcode system, price could simply keep going up without stopping.  If their mobile payment solution has any leg, watch out.  This one can become huge.  Perhaps, it will make up for my missing the $LNG trade.

$LRAD is moving cautiously.

At least, it is moving in the right direction.

$ORBC finally got some good news to halt the falling price.  Today it announced win of 16,000 units order from one of the nation’s largest retail fleet.  I believe this is just the beginning of a migration.  With the eleven new state-of-the-art satellites to be launched soon, more and more businesses will sign up is my take of it.

Finally a green bar to stop the falling reds.

Almost forgot to mention that I sold $XONE near $25 to lock in gain ’cause of its potential resistance at $25ish.

Thanks to $DMRC and $LRAD (my two largest position), my port gained another 2.3% today with YTD gain at 11.4%.

Current holdings:

LRAD, DMRC, ORBC, GALE, AMRN, NUGT and 5% cash.

From my other account:

Still holding $MCIG despite another down day…

My 2 cents.

 

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Finally, a correction I’ve been waiting for…

But I was stopped out of my $TZA yesterday; so too bad.  There is a support from the 15 MA line.  If price can bounce from there, the bull is active.

I didn’t do much except to buy a starter position on $GALE with the available cash released from the three days settlement.

Price was above the 79 & 89 MA lines and the 5 and 15 MA lines are both pointing up. Although today closed negative after staying up positive all day, I’m holding this one to see which way the wind blow in the near future.

$DMRC held steady and closed on the positive note and above the 79 & 89 MA lines which was encouraging for the bull side.

Sooner or later, $DMRC will explode upward when retailers start to adopt its barcode format.  Of course, I’m betting that its technology will be adopted.

$BIOS bounced slightly which was an impressive feat giving the market was down.

With a green bar today, I see the uptrend is still intact despite the down red bar yesterday.  I’m still holding my shares I bought yesterday.

$APRI tried to rally but was being dragged down by the bearish market.

Price breached the downtrend line to the upside.  It is important that price do not retrace from here; otherwise, the downtrend line may become a formidable resistance.

Due to correction from $LRAD, my largest position, my port was down 0.7%.  YTD gain is now 3.45%.

Current holdings:

LRAD, DMRC, SWIR, KGJI, BIOS, APRI, NMRX, AMRN, GALE and 7% cash.

From my other account:

$TRTC was holding well today.

Price advanced cautiously.  Still holding.

My 2 cents.

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

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

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

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

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

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

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

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

The weekly chart also looks strong for $GALE.

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

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

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

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

Current holdings:

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

From my other account:

$PHOT continues to head much higher.

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

My 2 cents.

 

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

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

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

Potholes I fell into in 2013:

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

Slippery slopes I encountered:

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

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

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

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

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

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

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

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

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

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

Then I found $KNDI.

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

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

Hmmm….

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

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

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

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

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

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

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

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

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

Current holdings:

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

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

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

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

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

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

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

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

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

I wish everyone a happy and prosperous New Year!

My 2 cents.

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Market decided to take another breather day by staying neutral once again.

Stock Gawd has favored me today once again as well.  As I’ve predicted last Friday, $GALE was either going to take the baton as a runner or it was going to run concurrently with $KNDI.  Well, as luck would have it, the latter was the ones happened today.

Why would $GALE continue to head higher?  I see there are two major catalysts that are favoring $GALE in the coming year- its rapid relief drug Abstral for breakthrough cancer pain and its pipelines of breast cancer treatment drug- NeuVax.

– $GALE management has the good foresight to secure the right to sell Abstral in the US.  And by doing so, $GALE may have hit the jackpot when no one is looking.  Take a look at $INSY. INSY Therapeutics Inc. is the major competitor to $GALE’s Abstral since it is selling their own version of Fentanyl sublingual drug similar to Abstral.  Yet, $INSY carries a market cap of $870 million compares to $GALE $507 million after today close.  While $INSY has other pipelines in the work, its main revenue generator, I believe, is its Fentanyl sublingual drug.

– With proper marketing, I believe $GALE can take market share away from $INSY giving enough time.  Thus, by its Abstral product alone, $GALE has the potential to be worth at least current market cap before counting its breast cancer NeuVax treatment.

– If there are any positive news from its NeuVax trial results, price has no where else to go but up and up.

This is why I’m not surprised to see $GALE bounce higher today.  Friday chart pattern told me it would go higher and it did.

Take a look at the daily chart below:

Price has taken out the 12/5 high at $4.78 with volume higher than the last five days.  Momentum indicators below haven’t shown to be overbought yet; thus, I’m expecting this breakout to go higher this week.

Now look at the monthly chart below:

Whoa! Did you see the breakout from the high of Dec 2010 at $4.08?  From a long-term perspective, $GALE has broken out of a three years high and the chart looks like it is going to go much higher.

Meanwhile, $KNDI did not disappointed.  Instead of handing the baton to $GALE, it ran side-by-side with it.   In the morning, I was struck by a strong urge to sell some $KNDI to lock in profit.  It was my swing trade mentality that kept urging me.  To counter this urge, I’ve to remind myself about the lost opportunity I had with $LNG.  Back in the early days when $LNG was trading around $5 bucks, I loaded up big and gave way to my urge and locked in profit around $7.  After that, due to volatility, I never got back in.  $LNG is now trading at $43!  With $LNG in mind, I was able to sit on my hands.

I’m sure it will be a wild ride here.  I’m expecting to see some profit-evaporation due to volatility and profit-taking.  And I’ll need to remain steadfast in holding my $KNDI position ’cause I know that if I try to swing trade, I’m going to mess up a good long-term trade here ’cause you will never know when the next surprise rally will hit this stock.

From the daily chart above, $KNDI gapped up nicely but ended a red bar.  That may not mean anything but room must be given for some correction and profit-taking.  I’m just satisfied that the last few days have helped my portfolio to regain higher ground.

Asides from $KNDI and $GALE, $AMRN also popped back up today.  I’m a firm believer that there is a possibility for FDA to reconsider $AMRN position and perhaps will meet $AMRN half-way in some fashion.  Furthermore, I’m impressed by the citizen petition that was submitted to the FDA by the grassroots organization called EPAdruginitiative.com.  Read the petition and you will understand why I decided to add more 2014 March $5 call option at 12 cents to increase my bet.  The way I see it, the reward far exceeds the risk many-times over if FDA turns a favorable corner.  If not, I won’t regret my bet since the potential loss is definitely manageable for me.

From the daily chart above, you can see a healthy bounce with price closing above the 5 & 15 MA lines.

I spoke too soon on Friday regarding $XONE.  Today, $XONE flip-flopped with $DDD and $SSYS with the former going down and the latter going up!  Oh well.  Nevertheless, I’m in the money with $XONE and is holding this one thru 2014.

$LRAD, $CERS, and $KGJI were not performing well today but its smaller corrections were totally masked by the gains from $KNDI, $GALE, and $AMRN.  Huge gains from $KNDI has given my portfolio another healthy gain.

Due to $KNDI continued price increase, it has become the largest position in my portfolio with $LRAD coming in second.

Current holdings:

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

I also increase my stake in $PHOT in my other account (the same one where I trade options) in preparing for Colorado to open its door to legal pot starting Jan. 1st, 2014.  Per the article here: Colorado To Blaze Marijuana Tourism Trail In 2014 With Legal Pot Shops, it stated:

Whether there will be enough pot to meet the expected rush next year is another matter altogether. State laws impeded efforts to ramp up production before Jan. 1, meaning it could take several months for supply to catch up with demand.

The way I look at it, I’m expecting to see a lot of will-be marijuana growers lining up in front of $PHOT door looking for financing to start their pot farming on Jan. 1st.  Hence my adding more to $PHOT today.

My 2 cents.

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