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.

 

Comments »

Well, the market finally broke thru the support that it couldn’t do for three times.  Only this time, the fourth time is a charm…

Today became the day I was expecting to happen yesterday.  Although I was one day late, it didn’t stop me for jumping back into the $TZA train.

After the market opened and I saw it struggling to stay afloat, I immediately bought a starter position on $TZA and waited to see what happened.  It wasn’t a smooth sales.  My $TZA position were yoyo-ing b/w green and red until price finally broke thru the opening range to the upside.  I immediately added more and continued to add as intra-day highs were taken out again and again.  By the time I was done adding, I bought the full position as yesterday plus more.  I also bought back $FAZ.

The reason I had no qualm buying back $TZA and $FAZ ’cause I expected this bounce might not hold.  Seeing the DOW was tanking, I began to liquidate my swing trade position to stop the bleeding by selling $SVA first.  Later on, I sold $SEED when I saw the large bids made available.  It wasn’t a great price but if I wanted out, I couldn’t complain.

At first. $NUGT opened higher and stayed high even when DOW was initially falling off the cliff; thus, I did not sell to lock in profit.  I placed a stop where my breakeven point was and was stopped out not long after.

By day close, $TZA was banging its head against the 89 MA line.

Knowing the power of the 79 & 89 MA lines, I decided to sell half of my $TZA and $FAZ near the close to lock in gain.  I’m always mindful of a gap open against my positions. And I can always buy them back the next day if price continues to the upside.  Yesterday was a perfect example of why I had no qualm unloading my $TZA position to take losses ’cause I knew I could always buy them back the next day if circumstances changed to reflect my directional bias..

Due to my non-hesitation in buying back $TZA and $FAZ, I was able to generate gain as a hedge to offset the losses from $LRAD, $SVBL, $SEED, and $SVA.  It was another perfect hedge, the port remained unchanged once again.

Current holdings:

LRAD, SVBL, TZA, FAZ and 59% cash.

From my other account:

First, I was glad I sold $MCIG yesterday to lock in gain.  However, I was not so lucky with $FITX.  Of all things, one of the most popular cannabis stock $PHOT was suspended from trading by SEC.  At first, I thought the drop was normal giving the DOW was waterfalling; but the speed of the $FITX fall baffled me.  And when I scrolled down to look at the other cannabis stocks, I realized $PHOT trading was suspended.

With that realization, I decided to unload my $FITX position as well just to be safe.  It was tough to take a big hit on the position but the uncertainty of $PHOT investigation spilling over to $FITX was unsettling.

In about an hour before market close, Bill from $FITX gave investors a brief summary of how everything was still in good shape and that $PHOT investigation should not affect $FITX since they started this Lakeshore project way before a deal was struck with $PHOT.

Giving the assurance from $FITX, I decided to buy back 75% of my shares as a premium price ’cause price rallied hard not long after the statement.  Oh well, today was the 2nd time I had to buy back in $FITX at a premium.  I’m sure that if price took off due to $FITX success, I would look back at today premium as an insignificant issue.

Trading spotlight–> the moment you let go of the angst of paying premium to buy back your shares after selling your shares to either cut losses or lock in profit, you will find the freedom to sell your position as your trading plan dictates.  It took me awhile to understand this lesson but I finally get it.

My 2 cents.

 

Comments »

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.

Comments »

Market had a bounce today; but it was a soft bounce.  Not the “I’m going back up!” bounce.

Notice that price is still inside the consolidation range.  We may stay in this range for some duration.  I rather stay in the range than to watch a waterfall, do you agree?  However, all the technical signs are biasing to the downside.  5 MA is now pointing down and below the 15 MA line. Both momentum indicators are pointing down.

I made two big mistakes today.  Mistakes that I should know better…

The first one was selling out my $TZA at the open without giving it time to work it out.  The chart wasn’t so bad that I had to sell.  In fact, if I had a bit more conviction, I should be able to take some heat and see where it ended at.  Although I sold at breakeven, I threw away a trade that still has the potential to run.  Why didn’t I buy it back?  Well, ’cause I used up the free cash for other things and the other cash were tied up with the three-days settlement.

Did you see that the 5 MA line just crossed over the 15 MA to the upside?  It is like a upside down mirror of the SPY chart above on the 5 & 15 MA lines.

The other mistake I made actually cost me a bit of money.  I bought $CERS for the bounce this morning and was completely ignorant of the potential $40 million dilution that was announced last Friday.  Why didn’t I read the news to find out why such a big drop yesterday?  I was assuming that yesterday drop was just in sympathy with all the other drops everywhere.  Anyway, while the buy itself was a mistake, the bigger mistake was that I bought size.  Ouch!  When price dropped to $4.80; it reached my pain limit so I sold to cut losses.  I sold ’cause I finally read the news and realized the mistake.  While I made a mistake, I did the “correct” thing by cutting losses pronto instead of trying to justify staying in the position.  That is the way you have to play it if you want to stay in the game and keeping your gain.  While it hurt, I felt relief.  Even when price bounced back by the close; I didn’t care.

I also added back some $CARA I sold yesterday ’cause I like this stock.

I bought back $MZOR and $SEED as well but only half of what I used to own on the former and only 1/5th of the latter.

To top it, I bought $NUGT to supplement my $SVBL position.  I like the chart on $NUGT ’cause it looks good for a bounce.

Because of my error in $CERS, my port went down a bit which was mostly the $CERS losses.  The other minor fluctuations were offset by the gain in $LRAD.

Current holdings:

$LRAD, $SVBL, $MZOR, $CARA, $NUGT, $SEED and 40% cash.

From my other account:

Well, I’ve to admit that I made a mistake yesterday selling $FITX.  As a result, I’ve to pay premium to buy them back today.

Why do I buy it back?

i reviewed the list of cannabis related stocks last night and I couldn’t find anything I like to buy.  I thought of $PHOT but I didn’t want to pay the $0.50+ to buy it. Most of them are already trading at premium price.  $FITX remains the underdog that has the potential to jump over all others in spades.  And when I didn’t see other selling down $FITX, I decided to bite the bullet and paid the premium to buy the shares back.  I will add more if $FITX decides to drop a bit.

As the production facility continues to develop into the final stage, I can see price climb as well.

From the look of the chart, it is trading at neutral without bias in either sides, up or down.

My 2 cents.

Comments »

The market took a big dump in the back-office while the DOW was showing some light selling. The disparity was quite telling… It reminded me of the war movie where the enemy had infiltrated the military camp and caught everyone by surprise. Meanwhile, the king and the queen was totally oblivious to the slaughter that was going on while dining on monkey brain and bear paws in their sheltered castle protected only by a few eunuchs whose daily thought were occupied by a dream that one day a famous Taoist with magical power would come by to grant their wish of having their penis restored back into their original shape and size.  Thus, they were no match to the enemy whose only thought was to cut their head off… the big one, of course, since the small one was already gone…

As you can see on the daily chart above, price had sunk deeper into the consolidation range.  It closed below the low of the last five trading days.  Will it bounce tomorrow?  Who know.

Meanwhile, seeing that my $TZA position bounced hard after the open and took out the high of the last few days, I immediately double-down on my speculation without hesitation.

See how $TZA had bumped into resistance from the previous high and fell back?  Price needs to take out that resistance before heading higher.

Because I was committed to my $TZA position, I’d to follow through to reduce my long position to reduce risk and exposure.  While $TZA was a counter-trend to short, it is a poor hedge.  It would take a huge position to even come close to hedging my long; thus it would be prudent to reduce my long positions pronto.  Therefore, I sold all of $MZOR and the rest of my $KGJI and $SEED.  I also reduced my $CARA position reluctantly since I could be selling this small float stock at the bottom; but safety prevailed and the thought of buying them back at low teens helped me pull the trigger.

After the dust settled, I ended up holding only $LRAD, $TZA, $SVBL, $CARA and 46% cash.

Despite the port being down a bit over 2% today, my year-to-date gain is at 14%.  While I can still see my milestone high, it is a bit too far for a stone-throw. I’m going to have to work hard to climb back up to reach it.

From my other account:

I could not believe the day would come that I sold $FTIX… The injunction issued by the court to allow home/local growers to continue on growing their medical cannabis until the case go to trial later in the year put a wrench in my conviction of holding $FITX steadfastly.

While one could argue the injunction is good for $FITX since it would allow additional time for them to complete the facility and grow their crops, I’m more concerned on the limited buyers (only new patients are required to buy from commercial growers) and the real possibility that the home/local growers will prevail in the trial to come.  In other words, Health Canada new policy is no longer a 100% sure thing.  With the kind of float out there and the release of restriction for insiders to sell their shares in April, I’m just glad that I was able to sell today without taking losses.

However, I’ll be watching the cannabis sector to look for opportunity to jump back in.

My 2 cents.

Comments »