11-22-2013 Trading Journal

Market continued to head higher today as if those corrections were just a hiccup. Correction? What correction?

First, I got slapped again on my “obsession” with $AMRN.  This obsession directed me to choose $AMRN over $GALE to put my available cash to use.  I was thinking like $GALE had been moving up for too long and $AMRN had been pushed down too much, time for correction and time for bounce.  Hence my decision to buy $AMRN yesterday.  In hindsight, the thinking (or perception) “should be” $GALE had strong momentum and $AMRN had weak price action, time to buy strength and leave the weak alone.  Notice that I used the “no no” words of “should be”.  However, for my future learning sake, I need to remember this lesson.

On the bright side, when $AMRN bounced up from the gapped down, I was sensible enough to dump the position to take advantage of the bounce to reduce my initial gapped down loss by half.  I may be obsessed but I still have enough sense to know that if FDA has refused a meeting to $AMRN on the high level, the show is over.  There is no “save face” acceptance on Dec 20th with a yes vote.  If there is, why do $AMRN announces that “it planned to pursue the appeal“?

Well, despite my obsession with $AMRN, I know better than to pin my portfolio on one stock.

$PXD was trading down so I took the opportunity to buy some back for the bounce.  It did bounce a couple of time from the initial intra-day low and you could see on the chart that each bounce up became weaker and weaker and when it finally dropped below the intra-day low, I was stopped out for losses.

PXD_5m

As you can see on the 5m chart, price then bounced back with no sign of letting up.  And this time, I wasn’t in it ’cause I could not buy my shares back due to the three day settlement tying up my money once again.  I had allocated money for today bounce on $PXD and the trade took me out; so I was out.  Although I missed the bounce back, as far as I was concerned, I had followed my trade management to the teeth so I just moved on.  Missing trades are all part of the game especially when I’ve opted out of margin account.  You may ask why I don’t get a margin account anyway for situation like today.  Don’t forget that it is only in hindsight that we know $PXD  has bounced; but that doesn’t mean all stocks will bounce after I am stopped out.  Having a margin account will only allow me to over-trade and make stupid trade when I should be walking away.  Literally, the cash account is my circuit breaker.

I continued to add to $CERS when price kept on moving up.

CERS_daily

Chart looked good since price had taken out the pivot high of Nov 4th.

I also bought $KNDI to rebuild my position.

KNDI_daily

From the chart, price is now trading on a flat line instead of a continued downtrend.  Basically, it is consolidating for the next big move.  Giving the fundamental story regarding EV in China and its pollution issue, I can only speculate that it “has” to go up.  At least, both the 79 & 89 MA lines are still in a slightly upward angle.

While $LRAD was unable to maintain above $2 as I had predicted, I still have strong conviction for its long-term upside momentum.  I actually added more in the $1.9x price level.

LRAD_weekly

The weekly chart above shows that price has broken out of the Cup & Handle pattern with relative higher volume.  Now, I just have to sit on my hand on this one and see if price can climb higher from here.

$KGJI bounced off the the 89 XMA as I had expected.  It was a good thing I added more two days ago when it was near the 89 XMA.

KGJI_daily

Today price action further confirms the magical quality of these two 79 & 89 MA lines.  Now,you know why when price corrects to these level, I’ve no qualm buying for the bounce.  Yes, it doesn’t always bounce off these levels but the risk/reward ratio is FANTASTIC!  You can’t argue with statistic.  I’ve seen enough (and you too if you have been following my blog) of these bounces that I know the odd is good for me to buy these bounces as long as I apply risk management to these trades.  I was tempted to add more this morning but giving the limited available cash that was released today, I decided to buy other stocks such as $GALE.

I bought $GALE in the morning when it took out the upper opening range but decided to take profit when it was near $4.  At this level, I’m very mindful about correction on this one.  Thus, $GALE was a successful day-trade today.

I also bought some $WG for the bounce but was stopped out for small losses.

Despite my bad turn on $AMRN trade, my portfolio was up nicely thanks to $LRAD, $KGJI, $CERS.

Current holdings:

LRAD, CERS, KNDI, KGJI, CRTO and 35% cash.

My 2 cents.



Categories: Daily trading Journal

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