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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Finally, a correction day…

It was interesting ’cause even though it was a down day, $SPY still managed to come out with a green bar.  So, go figure.

With my $TZA opened green, I moved my stop to breakeven not long after the open ’cause I sensed the market wanting to bounce   It wasn’t long before I was stopped out of $TZA.  I was just happy to recover the losses from yesterday down day.

Since $SPY was acting bouncy, I decided to buy the two “Internet of things” stocks that I researched last night- $SWIR and $NMRX.

Both $SWIR and $NMRX are banging its head against the resistance of the 79 & 89 MA lines.

If prices can take out these resistances, it may run hard from here to the upside.  If not, i may have to contemplate taking a losses and look to buy back cheaper.  Regardless, I’ll have to find a way to stay with the “internet of things” stock for the long-ride up.

I learned a lesson on patience today.  After the open, I wanted to buy back some $BIOS. Instead of waiting for its to correct some more before buying, I went and bought when it was still trading higher in the morning.  With the DOW down at the open, I should have known better.  Now, I was sitting on a losses from the morning entry.

I like the strong yesterday up bar.  That was the main reason I bought back in.  I’m going to have to learn to take some heat on this one if I believe it is going up from here.  While today was a red day, price is still on an interim uptrend with price closing above the 5 MA line.

Despite a down day, there were only two stocks in my port that was down:$DMRC and $BIOS.  Fortunately, the rest of my position was either neutral or up slightly which was enough to offset “most” of the losses from $DMRC and $BIOS.  My port dropped slightly by 0.15%..  YTD gain is now 4.15%.

Current holdings:

LRAD, DMRC, SWIR, KGJI, BIOS, APRI, NMRX, AMRN and 9% cash.

From my other account:

$TRTC held steady for the day and I’m still holding.

My 2 cents.

 

 

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The market simply refused to correct… as much as the bear tried to push it down.

After a brief downward movement that took out yesterday low, the market bounced back up to close even for the day.

Seeing the correction in the morning, I bought a starter position on $TZA with a hard stop below yesterday low.  So far, my stop wasn’t triggered and I’m still holding $TZA. Let’s see if this will bounce back up tomorrow.

Despite giving back gain by day close, $TZA still closed higher than yesterday close.  From the chart, strong support is at $14.30.  It may bounce from here if yesterday low holds.

Continuing with the downward momentum from yesterday in $KGJI, I decided to take advantage of this fall to buy back some of the position I sold last week.  I was able to buy back at similar prices I sold before.

Price was able to bounce back up to even by day close.  Now that I bought back some shares, I’m again ready for this one to take off.

I noticed that $APRI was bouncing off a symmetrical triangle formation in the daily chart; so I immediately bought back a position.

I was fortunate to buy in before the rally continued higher.

$DMRC also performed nicely today.

Price broke out of the downtrend line and moved higher in strong volume.  I like the fact that price closed higher than the high of the last ten days.  The most important thing, from my perspective, is that price closed above the 79 & 89 MA lines.

Fundamentally speaking, someone posted a link to an article on Walmart highlights technology at shareholders event

Below is an excerpt from the article:

In another presentation, Cory Gundberg, VP of strategic planning of Walmart Technology, said the retailer has begun including digital watermarks in store circulars, allowing shoppers to use mobile devices to research items as they peruse ads. The company is also looking into using the technology on product packaging, he added.

While the article did not mention Digimarc’s digital watermarks technology or the Digimarc barcode for product packaging, it is up to us to speculate that it may be it.

Today price advance could also be due to positive review at the Food Marketing Institute (FMI) Connect 2014 show today.  With a much faster check out time using Digimarc barcode compared to conventional barcode system, the technology is just waiting to be taken.

Thus, I’m going to be sitting on this one for a long time.

Thanks to $DMRC rally and a quick gain on $APRI, my port gained 1% today.  YTD gain is now 4.3%.

Current holdings:

LRAD, DMRC, KGJI, APRI, AMRN, TZA and 26% cash.

From my other account:

I decided to buy some $TRTC for a bounce.  $TRTC was a victim of bear attack from the SeekingAlpha article issued last Friday.  Price sank like a rock after the article.  I bought today ’cause $TRTC announced that it is going to take legal action.  As far as I’m concerned, taking legal action means you can back up your own story and support the libel suit; otherwise, you expose yourself to more attack in the legal system.

Price bounced nicely from the chart.  There is strong support at 34 cents.  Giving the trend of moving toward legalizing medical marijuana, I need to find a cannabis stock to speculate.on.  While $FITX is still waiting for Health Canada to inspect, I like the prospect of $TRTC from here.

My 2 cents.

 

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Market continued higher; but I’m sensing a bit of wearisome here…

Nevertheless, it is only the first day of the week, let’s see where price goes the rest of the week. I’ll be cautiously optimistic from here.

I didn’t have too much cash free up from the three days settlement so I used what I’d available to buy back some $AMRN I sold Friday since price just won’t drop back down like it used to.

Price looked strong from the chart but it is now banging its head against the downtrend line.  However, if price takes out the high of $1.53 from May 28th, I may add more. While I sold too earlier before, I’ve to look at it from a new buyer’s perspective in order to jump back in.  If I was to “regret” my past action, I might not be able to buy back in.  Thus, it is important that we let the past be the past and look at each trade with a fresh eye even though you’ve just cut the trade.  It is all about catching the momentum and flow with it.  It is NEVER about catching the bottom or selling at the top.  Although sometimes catching the bounce at the right time may make it look like you have caught the bottom, the reality is that they are just coincident.

$LRAD continued to struggle in the consolidation range.

In the absence of news, price will be hanging around this area for awhile.  However, I like the fact that price is now climbing back above the 79 & 89 MA lines.

$DMRC bounced some more today.

Price is now climbing back into the 79 & 89 MA lines which, to me, is very positive.  Tomorrow, $DMRC’s Digimarc Barcode will be a showcase at the Food Marketing Institute (FMI) Connect 2014 being held June 10-13 in Chicago, IL.  Let’s see if this will move the stock this week.

Due to $LRAD correction, it offset the gain from $DMRC almost perfectly.  Thus, my port was even for the day. YTD remains at 3.3%.

Current holdings:

LRAD, DMRC, AMRN, and 42% cash.

My 2 cents.

 

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Away it went… up!

Look at the momentum to the upside!

Meanwhile, some of the my positions didn’t have the same momentum type of up movement…

$CLDX opened and headed lower which triggered my hard stop I placed yesterday.

While price recovered to even before closing; it did not have the same upward momentum to have a new high bar.  So, I did not miss anything by stopping out at small losses.

I bought $KNDI hoping to catch a bounce with a tight stop below yesterday low.

Nope, price did not take off like the $SPY and instead took me out by taking out yesterday low.  Looking that the chart above, You would think that it went out of air…Price also closed below the 79 & 89 MA lines.  So, I didn’t miss this trade for stopping out for small losses.

$BIOS opened higher than yesterday close so I bought back a starter position to test the water.

I even added more during the day; however, by end of day I decided to close out my position for small gain ’cause I didn’t want to hold this over the weekend when price only bounced modestly today.

$CREE went out of air by the close so I sold to lock in small gain as well.

With the $SPY shooting up, I didn’t want to hold any “swing trading” positions if price did not follow the same pattern.  $CREE gave back gain by the close so I sold.

$CLD also did not maintain the same $SPY upward movement; instead, it came back down from the intra-day high to settle back at the opening price to create a doji bar.

Nope, I was not willing to hold this one as well when price did not follow the $SPY so I sold for small gain.  Notice that price could not close above the 89 MA line which meant that these two MAs are still strong resistance.

I searched my emotional connection to selling out my $KGJI and $AMRN earlier last week.  The reason to my action was nothing more than letting the “momentum” of selling of other positions to carry over to these two positions which I actually hesitated to sell.

“Why not?”

A simple “Why not?” pushed me over so I clicked, clicked, and clicked to sell $KGJI and $AMRN to my own chagrin.

Since $LRAD and $DMRC are my long-term fundamental play, I left them alone.

Regardless of my non-stellar performance of the positions I sold, $LRAD and $DMRC both gained enough for me to recapture 1.2% in my port.  YTD gain is now 3.3%.

Current holdings:

$LRAD, $DMRC, and 46% cash.

My 2 cents.

 

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Today is a “Wow” day!

Look at the chart, “Wow!” is all I can say…

But before the “Wow” was to happen, the market actually went down not long after the open.  Thus, I went short with $TZA with a tight hard stop below the intra-day low. Needless to day, I was stopped out for small losses.  It was a good thing I had a hard stop close by; otherwise, I would lose a lot more than I want to if I didn’t pay attention.

Afterward, I looked for candidate to go long now that I had a clean port with plenty of cash.

I selected $CLDX ’cause the chart looked like it was ripe for busting out to the upside.

However, I used a close hard stop below intra-day low to protect myself in case the rally is short-live.

Next, I bought some $CLD for the bounce play as well.

While I was late to the table, the strong upward bar that took out the high of the last ten days reflected a lot of strength in today movement.  As in $CLDX, I also used a tight hard stop below intra-day low in case the rally lost momentum.

I also bought $CREE ’cause today doji bar was finding support at the 15 MA line and the 5 MA was coming to meet it.

I was looking for the 5 MA to turn back up after meeting the 15 MA line.  If price does not bounce from here, my tight stop below yesterday low will take me out for a small losses.

That was all I was willing to do today to test the water.

$DMRC recovered nicely today.

If price can bounce from here, current support has foundation that goes all the way back to February of this year.

$LRAD dropped significantly earlier in the day but recovered nicely by day close with higher than average volume.

If price can take out today high tomorrow, price may head back up above $2 easily.

Thanks to $DMRC recovery, my port also gained back 0.60% point.  YTD gain is now 2.1%.

Current holdings:

LRAD, DMRC, CREE, CLD, CLDX and 32% cash.

My 2 cents.

 

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The market continued to inch higher…

There was no doubt the bull was in charge today by looking at the daily chart.

Unfortunately, I couldn’t say the same for my own trading today.  Instead, I hit the reset button today to cleanse myself of trading chaos in my port.

Trading chaos?

Do you remember those times when everything you did was just not “right”?

Today was such a day for me…

It all started with my dumping $AMRN in the morning and then saw the price climbed back higher without me.  Normally, this wouldn’t bother me ’cause I would just buy them back if I felt the momentum had reversed.  But the thing was that it had been umpteen times I’d been flipping $AMRN and today “missing out” after exiting the trade simply moved me closer to my internal reset switch.

$BIOS was trading higher not long after open so I added more.  It all went fine until in the late afternoon when $BIOS failed to maintain attitude and fell back down from $8.20 twice intra-day.  And when price breached the $8 support and traded below it, I knew I had to sell to protect profit ’cause the daily bar was forming a possible gravestone doji candlestick bar.  This could become bearish if price trades lower than the today low tomorrow. But I preferred to jump the gun and take my money first.

Maybe because seeing $BIOS gave back the gain so easily after what I thought was a strong day, it triggered my sense of “hopelessness” in my perception of the market trend.  It didn’t help when I saw $DMRC continued to deteriorate in price momentum; $NVLX turning back down after CEO and COO interviews; and $KGJI dropping further down despite a stellar earnings report in the last quarter.  It was like the stocks I was holding were defying logic simply to prove me wrong.

Then I questioned myself about buying into $INO in front of the reverse split and the Phase 2 result.

“Holy Smoke! What was you smoking, Z?  Why don’t you go to Vegas for that?  It would be more entertaining…”  

That voice in my head was all I needed to take action to cleanse myself of positions that were trying to tell me I shouldn’t be holding…

Immediately, I dumped $INO at breakeven.  Thanks goodness for the breakeven.

Then I dumped $KGJI to cut losses.  This was a tough one ’cause I was sitting on huge gain I didn’t take after the spike up from the stellar earnings report.  Instead, I added more which caused me to lose money due to higher average price from averaging up.

Then I sold $NVLX.  This one has a story similar to $INO, a technology that has been around a long time but nothing come to fruition yet.  In $INO case, it was synthetic vaccine, in $NVLX, it was “cell-in-the-box”.  Both technologies have the allure of saving the world and yet no one has cracked the code yet.  It was like someone “almost” invent a perpetual motion machine. Needless to day, I fell for the story hook, line, and sinker.  Although I don’t have any position on $NVLX and $INO now, I do want their technologies to succeed.  Well, I guess it is safe to say that everyone wants the perpetual motion machine to exist as well…

Then I sold $SEED.  $SEED’s last quarter earnings was horrible but the news of another China company offering a buy out propped the price back up above $2.00.  What bothered me the most was that there were no news at all from $SEED regarding the status of the offer or any counter-offer.  It was like the offer wasn’t really there.. or is it still there?  Well, with my internal fuse kicked, it didn’t matter if the deal was real or not, it lost its power over me so I sold to lock in whatever gain I had.

NO!  I couldn’t sell $DMRC.  I couldn’t even if I want to.  $DMRC is the “one way ticket” kind of stock, the kind that say, “once you are in, you better be right or you will lose big”.  I can think of it as similar to buying a piece of real estate in the outskirt of the town ’cause you believe the town will eventually grow into the land you have bought.  I’m betting that the future will adopt the Digimarc UPC barcode format, so I’m holding this purely for fundamental reason.

I’ve high hope for $LRAD and its technology.  At least the technology is actually functional and working, unlike $INO and $NVLX.  Like $DMRC, I’m just waiting for the world to adopt the technology.

There you have it, today I woke up and threw out the garbage (don’t worry, my garbage is someone’s treasure… meaning I could be wrong in selling them).

Oh yeah, did I mention that these positions that I’ve had were also draining out my YTD gain?  Seeing that I’m dangerously close to giving back all my gain for the year also contributed to my “kicking the fuse” to sell out.  YTD gain is now down to 1.50% for the year.

Current holdings:

$LRAD, $DMRC and 47% cash.  Yeap, these two positions comprise more than 50% of my portfolio.

My 2 cents.

 

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I’m amazed at the resiliency of the bull in the SP500.

While it was slightly down for the day, the bull possessed strength that the bear couldn’t overcome to make the market drop like a stone.

I bought back $AMRN for the bounce when price started to move up from the low of the day.

Price climbed back up to stay green after creating a lower low bar for the day.  Let’s see if the momentum will continue tomorrow on the upside.

Next, I bought $INO for the bounce.

Price looked like it was bouncing so I bought despite the fact that $INO will be doing a reverse split by end of the week on a 4 to 1 basis.

I think by doing a reverse split, management cover themselves by setting up a base level for the price to react to the coming Phase 2 result. If Phase 2 result is positive, the high price from the reverse split will allow fund managers to buy immediately to join the bandwagon.  And if Phase 2 result is less than expected, price still has a long way before it will drop below $1.00.  Thus, I’m betting on the side of positive result.

Due to corrections from $LRAD and $DMRC, the losses more than offset the gains from $BIOS.  My port gave back 0.50% today.  YTD gain is now 3.5%.

Current holdings:

LRAD, DMRC, BIOS, KGJI, SEED, INO, AMRN and 9% cash.

From my other account:

$NVLX is holding well so far.

Price is only a stone throw from breaking out of the downtrend line to head back up.

My 2 cents.

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The market decided to start June with an up day despite the pressure from the Bear to bring it back down.

I said the bull won the battle today once again.

While the bull won the SP500, my port lost the battle today.

$DMRC took a hit again which I’ve no choice but to stick with the drawdown.  I’m holding $DMRC for the event play.

What event?

Well, I’m waiting for $DMRC to announce some retailers’ adoption of the Digimarc UPC code format.  While I don’t know if the new format will be adopted at all, all I know is that I’m betting that it will.  While I stand to lose quite a bit of dough if it is not adopted, the reward of being adopted will be mind-blowing.

It was a good thing $LRAD closed back at neutral after being down all day; otherwise, my port would have taken a much bigger hit.

I also sold $AMRN to cut losses in the morning when price failed to hold above $1.40.

Due to correction from $DMRC, $KGJI and $AMRN, my port gave back 1.1%.  YTD gain is now 4%.

Current holdings:

LRAD, DMRC, BIOS, KGJI, SEED and 20% cash.

From my other account:

$NVLX bounced back up today.

I like the fact that the 5 MA line is hooking back up.  Momentum indicators at the bottom are also coming back up from below.

My 2 cents.

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Market continued higher- like seven days in a roll (except for one tiny pause couple of days ago.

Wow, that was as bullish as the market can get.  Can the market break its five years cycle of rally and turn 2014 into a six years bullish run for the first time in 21st Century?  Remember, we are the ones who define the rules; whereas market will go where it pleases. Think about it, if you don’t have your money in the market, where else can you put your money?  CD in banks?  Money market?  Real estate?  There is really not much of a choice.  The stock market is the only next best thing to combat inflation. Yes, inflation where our Gov’t tells us there isn’t one. Housing price, gas price, and food prices are all creeping up.  Ok, cost of computer hardware are going down, whoopee doopee; but that is not essential to survival.  All costs related to essential survival are going up and will continue to go up as the population continues to expand in a world where the average lifespan is much longer than our parents and grandparents.

What about the collapse of the momo stocks/Nasdaq for the last two months?  Isn’t that a “forewarning” of what is about to happen to the general market?

Good question.  Sure, there is a “probability” of that happening.  On the other hand, there is also the probability that the correction of the momo stocks are simply the market cleansing itself out so that it can continue its ascent.  Think about it.  Comparing to history, the recent correction of the Nasdaq/momo stocks for TWO MONTHS straight failed to bring down the general market according to the “Nasdaq leading the general market trend” thesis.  Instead, the S&P500 was able to fight the Nasdaq gravity pull and started to head back up to make new high while the Nasdaq is still fighting to head back to the previous high.

Take a look at the daily Nasdaq Composite Index chart below.  I’ve highlighted the consolidation range based on what the immediate pivot highs and lows after Nasdaq made new high on early March.  This is the same formula I used to highlighted the SP500 consolidation range you see above.

Notice how the Nasdaq had collapsed below the consolidation range, bounced off the 79 & 89 “magical” lines, and then broke thru below the 79 & 89 MA lines by mid-April to find support at the previous trend low at beginning of February.  Meanwhile, the SP500 was able to stay inside the consolidation range most of the time with a short-term dip below the consolidation range in mid-April in sympathy to the Nasdaq drop but that was the extent of the Nasdaq pull.  The SP500 bounced back up above the 79 & 89 MA line and into the consolidation range immediately after the dip and began the ascent back to the top of the consolidation range while the Nasdaq continued to be affected by the gravity pull during the same period.

Now, after reviewing both charts (SP500 and Nasdaq), Who is leading who now?

Based on the old “Nasdaq leading the SP500” thesis, the SP500 would not be making new high; it would be making new low.

But that isn’t the case right now, Isn’t it?

Folks, we are entering into a new era where it may be more productive to follow the general market trend instead of making prediction of coming doom and groom ’cause of the five years cycle established in the past.  You really cannot apply the past to current market condition ’cause there were no QEs for such an extended periods in the past.  The whole mechanism of the market has evolved to the point where the past is the past and new rules are being formed per current market environment.

The dynamic of our population increase demands that the market continues to stay healthy.  Otherwise, the consequence of a market crash will be ten-fold worse than the past.  The world knows it and will do everything to prevent a world-wide market collapse for the consequence will be unbearable.   The collapse in 2008 gave the world leaders a glimpse of the monster that could set the human race back in time.

All things considered, I believe we are setting the base here as the next support when the market correct in the future.  In other words, I believe the market will continue to head higher from here and current level is where the base is for the next correction to find support.

Enough of my market philosophical 2 cents…

I added to $BIOS today ’cause price opened higher and moved higher.

Now, that is a nice looking bullish pattern there.  I need to hold on to this one for the ride up.

I bought back $AMRN when I found out that the House Fiscal Year 2015 FDA Appropriation Bill & Report includes the following:

Special Protocol Assessment Agreements.—The Committee is concerned about questions that have arisen in connection with the rescission of a Special Protocol Assessment Agreement (SPA), including fundamental questions concerning FDA’s adherence to the statutory and regulatory guidelines that apply to the SPA process as well as to questions concerning fairness to the sponsors. The Committee would like to reiterate that FDA is expected to adhere to the established standard as informed by the Congressional Record and the 1997 PDUFA Goals Letter.

I’m thinking that the FDA may take some action to “save face” that end up benefiting $AMRN. Of course, the FDA may not even care and continue to punish $AMRN for whatever reason. If price could not find support at $1.40; I may have to think about cutting losses once again.

Next, I sold $DNN for breakeven before price fell back down below my entry point.  I bought this for the momentum and I did not want to stick around when momentum died down.

I also bought $KNDI for the bounce but decided to bail by closing bell when price did not perform well for the day.

$LRAD had a very nice gain today which helped my port quite a bit.

Price bounce right back above the 79 & 89 MA line and look like it may gun for the nearby resistance soon.

Despite a pullback from $DMRC, $KGJI, and $AMRN, gains from $LRAD and $BIOS more than offset the losses that my port gained 3/4 of a percentage for the day.  YTD gain is now 5.1%.

Current positions:

LRAD, DMRC, KGJI, BIOS, SEED, AMRN and 15% cash.

From my other account:

$NVLX corrected a bit today but I’m still holding. Next week will be telling on this stock.

My 2 cents.

 

 

 

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