11-07-2013 Trading Journal

Market started off the day on the upside but somehow slipped on the banana peel and fell off the cliff…

$CERS opened and proceeded to climb over $6 rather quickly.  Without hesitation, I bought a starter position.  It was a good thing I only bought a starter position ’cause price could not hold and eventually collapsed to the negative territory.  It was as though you were standing on the beach enjoying the sunshine and then found yourself standing on a quick sand sinking fast.  However, I believe this quicksand is not deep at all.  In fact, I think my foot found a hard floor to stand on.  Therefore, I may elect to rebuild my position with a much lower cost basis.

Next, I was eyeing $PXD for a possible bounce when price continued to head south.  There were two supports line on the daily chart:

PXD_daily

The blue line represents the support created from the pivot highs of September; the second support line is the 79 & 89 MA lines. Notice also that this MA support lines is also intersected with the support of the early August high (see yellow line).  I bought a small starter position on the blue support line to see if it would hold. It didn’t so I wait for it to drop near the 79 & 89 MA lines.  Once it touched $185, I started to add for the bounce.  After I added, price did bounce but by the end of the day, it came back down near my entry point.  Let’s see if it will hold tomorrow.

Seeing $GALE also took off from the open, I bought back some position for the bounce.

Gale_daily

Even though price did not maintain the higher price from the open, I like the fact that the price did not continue the waterfall action from yesterday.  My main reason for getting out yesterday was due to concern that price would continue to take out yesterday low from the downside momentum and take out the support lines of 5 & 15 MAs.  It didn’t happen, so I was glad I bought back some today. Did you see how the low of today bar still stayed on top of the 5 & 15 MA lines?

Next, I bought back some $AMRN for the earnings bounce.  However, I got cold feet thinking too much about the potential heavy cash burn rate and that Joe Z. might fumbled on the CC call that might brought another waterfall action.  Well, it turned out I was worried over nothing.  I will look to buy back some tomorrow morning.

$KGJI bounced back today and put a pause to the downside momentum.  I like to see next Friday earning report to show surprise blow-out earnings that will bring an upside rally from here.

Edit: I forgot to mention that I sold $SPXS to lock in profit. I figured tomorrow may be an up day.

Current holdings:

LRAD, KGJI, PXD, GALE, CERS, KNDI and 47% cash.

My 2 cents.



Categories: Daily trading Journal

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