The market continued on downward from the starting gate, with the exception of a small bounce inside the hour after the open, price followed the waterfall pattern all the way to the close.

$SPY is now trading near the heavy supports (79 & 89 MA lines, lower range of consolidation area–> near the previous two pivot lows in 3/14 and 3/27 respectively).

Due to that bounce that failed near the close, I decided to close my $TZA and $FAZ to lock in the gain.

Why?

At first, I thought I would hold for tomorrow; but then I noticed the falling prices for many of the momo stocks had been “decelerated”.  In other words, while they were still down for the day, the percentage down was less than that of last week.  Also, $TZA and $FAZ are not known to be trending vehicle.  From my history of trading, I gave back gain in $TZA for holding too long more than I could count.  They had a tendency to gap down against me if I over-stayed the position.  Thus, taking this lesson, I decided to take the money and run to break the old pattern.

If market continues to fall tomorrow, I can always buy $TZA back…

How did I start my day?

Let’s see, I added to $FAZ after the open to flow with the upward momentum.  I did not want to add to $TZA since I already had a large position.  Adding more would be over-weighting my port that a sudden rally on the DOW would put my port in a precarious position.

Next, I bought $NUGT since the chart looked good for a bounce.

Price was trading above the 5 MA line and it gave me the confidence to buy a starter position. If it drops below the 5 MA line tomorrow, I’ll be out.  If it bounces higher, I’ll add more.

As mentioned above, by day end, I closed both $TZA and $FAZ to lock in gain.

Because both $LRAD and $SVBL did not drop much, the gains on both $TZA and $FAZ more than offset the losses that I ended up with a small gain in my port.

Current holdings:

LRAD, SVBL, NUGT and 66% cash.

From my other account:

$MCIG was struggling with the support @ $0.60 so I put a stop just below 0.60 and was stopped out in no time.  Price proceeded to waterfall all the way to $0.50 and consolidated there for about half-an-hour.  Seeing that price did not go any further down (come on now, at $0.50, $MCIG was down 20%, so I saw little risk for price to go any further down); thus I started buying some of my shares back.  I paid b/w $0.50 and $0.535 to buy back about 70% of my shares.  I used the 30% to add more $FITX when it was trading at low $0.73.

As you can see on the $MCIG chart above, price showed a very nice hammer candlestick pattern.  Did you see the tail coming close to the 89 MA line. If price takes out the high of today hammer candlestick, $MCIG may bounce from here.

$FITX also recovered nicely from the day sell-off.

Did you see how the Bollinger band began to form a narrow range around the consolidation area?  Any significant price movement that closes either above or below the Bollinger band will be big alert to future price trend.  I like to think that price will close above the Bollinger band simply because I believe $FITX will complete the facility with such high standard that Health Canada will simply approve the license.

My 2 cents.

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Market couldn’t make up its mind about being a down day today; it tried to go down but last hour rally brought it back to neutral zone.

As you can see, price is still right at the resistance point of previous high. Tomorrow job report will determine the final outcome.  A breakout to make new historical high or a breakdown for a possible bear market.

Due to the initial downdraft of the market, I added to $TZA and $FAZ.

As you can see, $TZA had a nice bounce and it served the purpose of hedging my portfolio since $LRAD was in negative territory.

$FAZ didn’t have the same bounce due to the late rally by the close.  Thus, my close stop at breakeven was hit and I was stopped out.  I chose to put a stop on $FAZ and not on $TZA ’cause I didn’t want to be too over-weighted on short ETF due to the job report tomorrow.  I can handle $TZA going against me but not both.

While most of the stock lists on my quote machines were in red, $SEED was showing resiliency in green.  Thus, I bought back 25% of my original size for a possible bounce.

I like the fact that the 5 MA line is now pointing up.  If price bounces from here, I’ll continue to add.

I’ve wanted to buy $GWPH when I found out about the stock but did not want to chase its high price; thus recent correction had given me the opportunity to buy some today.

Did you see how price formed a near “doji” bar right at the 79 & 89 MA lines?  Seeing the support there, I bought a position looking for a bounce.

Thanks to gain on $TZA, I was able to hedge against the downdraft of $LRAD; thus my port was a solid breakeven for the day.

Current holdings:

LRAD, TZA, SVBL, GWPH, SEED and 42% cash.

From my other account:

$MCIG took another tumble and the chart did not look good at all.

See how price close below the 79 & 89 MA lines?  Despite the poor chart outlook, I’m still holding this one for the fundamental story.  $MCIG will be launching the vita-cig in late April and any good feedback on this launch will drive the price up.  They are also looking into vaping alcohol.  Is it even possible?  Well, if people can sniff glue to get high, I guess you can sniff the “alcoholic vapor” to get drunk as well…  ok.. not sniff, but to inhale thru the mouth using $MCIG alcohol vapor-stick- same principle whether you inhale thru the nose or the mouth..  I’ve to give $MCIG points for creativity.  And if this alcohol idea can gain even a small traction, lo and behold, the sky is the limit.  Now, you know why I’m holding this one waiting for the fire-cracker to start cracking…

$FITX remained neutral waiting for the facility to be complete and the approval of license from Health Canada.  As far as I’m concerned, $FITX will get the license so I’m still holding.

My 2 cents.

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Today the bear began to show its face with a bit of a teeth exposed…

While price is still inside the consolidation range, it is important that price bounces some from here or we may be seeing more selling again.  There are three supports that are the bull defenders against the bear.  The lower range of the consolidation range and the 79 & 89 MA lines.  Next line of support is the low of early February.  If these supports cannot stop the bear, we may be looking at the beginning of the bear market.  No, it won’t be a big drop like 2008; but it will be a slow torturing trend for those who decides to hold for the bounce that never comes.  Hey, I’m getting ahead of myself here, pardon my senseless bearish sentiment.  Nothing is confirmed until you meet with Mr. Hindsight; but by then all Mr. Hindsight will tell you is, “I told you so!”.

Today price action made me regret selling my $TZA position yesterday morning.  Yes, I’m human so I’m entitled to feel a bit  “cheated” when my prediction was right on target but my conviction lacked resolve.  There you have it, conviction plays an important part in catching a runner, especially when you are trying to catch it at the starting gate.  By lacking conviction, I cheated myself of the $TZA profit.

I considered myself lucky that only about 10% of my three-days settlement cash was released today ’cause I spent it all by adding to $CARA, $SEED, and $MZOR in the morning looking for a bounce.  Then I had a meeting that lasted most of the trading hours; by the time I came out, I was in for a not-too-nice surprise.  While the three names I mentioned did not cause that much damage, it was the $LRAD drop that compound my losses a bit more.

However, I’m seeing a lot of potential bounces here:

Take a look at $SEED chart below:

Did you see the price literally settled down on the 89 XMA line?  If there is more available cash free up tomorrow, I’ll buy the bounce (only if there is a bounce) to add more.  No, I’m not averaging down, I’m merely trying to rebuild my position back to its original size.  Remember, per my “personal” definition, if I’m scaling into a position when price is dropping, I’m simply accumulating a position; however, once I’m done with the accumulation, any add-on will be considered averaging down ’cause I’ll be exceeding my risk level I’ve originally established for myself.

$MZOR again trekked toward the lower consolidation range.

If it takes out the lower range, I’m going to have to sell it to cut losses.  However, I prefer that it bounces from here like it did several times before.  The fact that it could not bounce from the lower range means the bear is stronger than before; hence my resolve to cut losses from breakdown.

$CARA is reporting tomorrow after hour so I’m holding this one for the gamble.

I also sold $NUGT when it took out yesterday low in the morning.  Thanks goodness I did ’cause it saved me a lot of grief from losing even more in the meltdown.  See, it pays to cut your losses fast to avoid a bigger losses later.

Despite another down day, I’m still up 11% for the year.

Current holdings:

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

From my other account:

I added more $FITX to bring it back to my original size.  And yes, I paid more to buy them back.

Despite today market slaughter, $FITX held very well!

I also bought $MCIG, another cannabis play.  While going over the cannabis selection the other days, this one pulled me in.  I like the concept of pen-style vaporizer for $10.  It is affordable and most people won’t have to think too hard to buy it.  If I lose the pen-vape, no big deal.

One other reason I like $MCIG is because of the technical bounce I see on the chart.  Price was bouncing from yesterday green bar that bounced from the 38% Fib retracement.  Did you see that price actually closed higher today?

Now, I’m all set to take advantage of the growing cannabis market.  May this port one day eclipses my main port mentioned above.

My 2 cents.

 

 

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