11-13-2013 Trading Journal

Market opened down and proceeded to work its way back to the surface and then flew up to the sky!

My first order of the day was to get back into $PXD due to a higher pre-opening price. Once market open, I immediately bought back the shares I sold yesterday albeit as a much higher price from what I sold.

Sidebar: In trading, you do NOT want to think of “could’ve” been this “$” ’cause thinking this way will cause you to hesitate. Don’t even think of trying to buy back at price you’ve sold before ’cause it will make you lose the opportunity to get back on the horse especially when the horse is already running in the direction you want. You want to look at each trade as a brand new trade. Ask yourself if you will take this trade today as if you haven’t traded it before. If the chart supports it, by all mean, take the trade. Forget the fact that you’ve taken a loss on this the day before.

Yesterday I sold ’cause the chart showed that price might continue to head even further down without the 79 & 89 MA supports. This morning price action cancelled this bearish thesis and by having the opening price started on top of the 79 & 89 MA lines reinforced the support once again. Remember, the 79 MA is still pointing up even though the 89 XMA is flattening. In my book, the uptrend is still intact; thus, the only action I needed to do this morning was to buy back $PXD immediately.

When price continued to head higher by taking out the upper opening range, and then taking out the previous days high, I kept adding to my position. By the end of the day, $PXD is now my 2nd largest position in the portfolio behind $LRAD.

PXD_daily

See how the big green bar today confirmed yesterday low at the interim bottom for a possible big bounce ahead.  BTW, for those who look for waves sign or follow Elliot Wave Theory, today bounce may as well complete the ABC wave correction after a five waves uptrend.  I know, price needs to take out the high Nov 5th before we can confirm the ABC pattern. If the price action of $PXD cannot convince you of the hidden wave patterns some stocks seem to follow, I don’t know what will.  We have a five wave Elliot Wave uptrend that follows by an ABC (3 waves) correction which happens to land directly on top of the 79 & 89 MA lines support.  Magical!

$KGJI opened higher and I immediately bought back most of the shares I sold yesterday.  Again, same principle as $PXD.  A strong gapped up cancelled the bearish stance from yesterday down day.  And yes, I paid more than I sold for.  So what if price will take off big time from where I’ve bought today.

KGJI_daily

Although price did not stay on the high side at closing bell, I take comfort that the 5 MA line is now crossing back above the 15 MA line.

$GMCR opened lower due to news and I sold my position after waiting for a few minutes.  I know, if I waited a bit longer, I might be able to spare the loss and made even more money since price closed on the positive side.  At first, I thought about putting a stop much lower than the opening range low to give it more room but I decided against it as my own peril.  Oh well, moving on.

gmcr_daily

However, based on the chart, it does look like a bottom has been formed and a buy might be in order if today high is taking out tomorrow.  I might just do that.  Remember, today losses is behind me.  If price can bounce back to the formal high of $90, who cares about a couple of buck “former” losses?

$AMRN… I was cheated today.  Price dropped below $1.50 and I panicked and sold.  Afterward, price climbed back up and closed higher for the day!   Unless price can take out today high, I’ll stay away from this one for awhile since I’ve been whipped-saw to dead from it.

$GALE was my best friend today.  While I expected the next target of $3 to be hit soon, I didn’t expect it to be hit today.

Gale_daily

After seeing price climbed over $3, I watched to see if it could hold.  I looked at the 5min chart and saw it struggling.  Therefore, i decided to cash in my profit before giving it all back.  I sold 80% at first and was stopped out of the rest when it broke the $3 to the downside.  Today volume was very large.  This could mean a major distribution was underway at the $3 resistance.  With that kind of volume and price could not move higher than $3, I decided to exercise caution.  I chose not to jump back in even though price settled back at $3.  I like to see if price can continue to climb before buying back in.  However, I banked a healthy gain.

$KNDI had a nice bounce and I like the fact that it did not trade below the 5 MA line.

KNDI_daily

Thus, I’m still holding all my shares.

$CERS also showed a strong possible bottoming pattern due to today bullish engulment bar.

CERS_daily

I may add more tomorrow if today high is taken out to build my position back up.

$AUDC bounced higher and I added some more.

audc_daily

Also, the 5 MA line is hooking back up so it is a good sign.

I sold my $TINY position as breakeven and thought I was lucky to be able to do that given the poor earning report.

$LRAD had a minor correction and that was to be expected giving yesterday big up day with no news.

Due to strong move on $PXD and $GALE, my portfolio increased nicely today.

Current holdings:

LRAD, PXD, KNDI, KGJI, CERS, AUDC and 26% cash.

My 2 cents



Categories: Daily trading Journal

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