I’ve to give it to the Bull; today price action is quite a ride from a bear attack to a bear heart-attack!
Below is the SPY daily chart, take a look at the beautiful green bar in today price action. It took out the lows of the last 2 trading days and then turned around for the greener pasture. One thing to be aware of is the divergence in the momentum indicator below.
Although I sold a chunk of my AMRN and all of my GLOG this morning; I bought them all back when I saw the intra-day trend change. I paid only a bit more for GLOG but paid quite a premium to buy back the AMRN shares I sold this morning. In the scheme of the bigger picture, it is my opinion that the premium I paid to get back on AMRN will be insignificant IF (a big IF) there is a takeover or merger coming in the near term. The way the price action behaved today, it seems like everyone is gambling that something will happen soon.
Below is the 15m AMRN chart. I ended up buying back AMRN in the mid-$14 after I sold a bit below $14 in the morning. Well, that’s the way I have to roll when I’m following price action.
Below is the daily chart of AMRN. Now, did someone know something? The way I see it, the chart always give you a head-up.
Currently, I’m 38% invested with 16.7% in AMRN.
Remember, follow the price action!