03-07-2014 Trading Journal

The market had a wild swing during the day but closed the day neutral.

SPY_Daily

While it was a red bar, the overall trend is still up.  Notice that since beginning of February, there was only two significant corrections, 02/19 and 03/03.  This can only mean that we are in a kick-ass bullish trend or we are due for another small correction soon.

And this is the basis of my concern that I no longer feel the conviction to hold on to my $KNDI shares.  A collection of recent events had somehow changed my strong conviction on $KNDI into a cautious “going for a quick buck” speculation.

What recent events?

Remember that time I bought $XONE in December @ low $5x.xx and rode it all the way to high of $70.xx+ in mid-January and then watched a whole chunk of my unrealized gain evaporated into thin air in the name of “bullish conviction”?  This experience taught me that I must temper my conviction with a dose of short-term reality. This lesson was further confirmed by my most recent gave-back of my medium size unrealized gain on $CERS going into earning day.

Reaching my milestone target is another event that put me into cautious mode.  I do not want to fall below this milestone high so early in the game after just reaching it.  Selling out my largest position (30%+ of my port) to lock in gain was the only way to ensure that my milestone high would not be out-of-sight if a correction hit $KNDI b/w now and March 17th reporting day.

Since $KNDI had climbed so fast and is making new high approaching the March 17th reporting day, I’m becoming more leery of holding such a huge amount of unrealized gain gambling on the earning outcome.  In other words, if I’m going into this earning date with my unrealized gain on the table, I’m practically betting this whole $KNDI pot (principle and unrealized gain) on the earnings result.  So  I asked myself if I am ready to push all my $KNDI chip in the center of the table?

No.

The possible “island top” was all I need to find an excuse to sell $KNDI to lock in profit last Tuesday 03/04.

In an nutshell, I lost my “nerve” on $KNDI.

But that is just me.  $KNDI could surprise and continue to move much higher and those who have the gut to bet big will surely be rewarded for their risk-taking.  I believe I was rewarded very well for my gut and conviction of buying at the low $5 and rode it all the way to $18.xx since the latter half of 2013 with a double-down in late December after Geely’s announcement on the EV version of the London’s black taxi.

For now, $KNDI is just another possible speculative bet that warrants a “guerrilla” type of trading- in and out with small to medium size position for a quick swing trade.  With more update fundamental news, I may again become a longer-term holder.  One thing I learn is that today stock market environment requires us to combine nimbleness and a long-term outlook at the same time.  Think of a jaguar following the herd jumping in and out of the herd for the kill but still follow the herd for the next possible kill.

I actually went in with some starter position on $KNDI today but chickened out at breakeven when I realized I didn’t want to hold the position over the weekend.

Both $CARA and $LRAD were taking hit today so my port suffered another small setback.

Since $CARA position was only 1/3 of my original $KNDI size, My conviction of its disruptive pain-killer technology can handle the drawdown.

CARA_daily

So far, all I’m seeing is some normal price correction.  Still holding my shares long and strong despite taking heat.

$SEED was practically neutral which was good enough for me.

seed_daily

Notice that price is still above the support area. Still holding long and strong.

$KGJI bounced slightly today.

KGJI_daily

Perhaps, next week price will take out the $1.85 resistance once and for all?

$MZOR performed well today coming back from a bearish attack to close only slightly down.

MZOR_daily

Price is still trading in the upper-range of the consolidation.

$LRAD was still stuck in its own consolidation range.

LRAD_daily

Today was another set back but I like to see price bounce tomorrow to stay inside the recent consolidation area.

Due to $LRAD and $CARA correction today, my port was down another notch but overall is still above milestone high.

Current holdings:

LRAD, SEED, MZOR, CARA, KGJI and 28% cash.

From my other account:

$FITX broke thru the resistance today.

FITX_daily

Although it fell back from the high of the day, it still closed above the previous resistance which has now become support.

$FITX announced that it acquired Hemp Technologies Ltd.  I believe that $FITX is laying on the correct brick to build the company up. To me, it makes perfect sense.  After harvesting the 1.3 million pounds of medical cannabis, those non-bud (leaves and stems) can be used for industrial hemp.  Nothing go to waste.  What perfect synergy!

Still holding long and strong.

My 2 cents.



Categories: Daily trading Journal

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