03-21-2014 Trading Journal

Market was behaving like a whale today.  It came up for air and then dive right back into the ocean…

SPY_Daily

As you can see in the daily chart above, price hit the resistance at the previous high and fell back inside the consolidation range.  Basically, the market is not ready to make a new high unless there is some catalyst to push it up.

Today, I shifted my positions around.  I sold the rest of $KGJI ’cause the chart looked pretty bad in the morning.  With gold price climbing since early January but $KGJI was stuck in the consolidation range all this time.  Now that gold price is correcting, $KGJI went down with it.  I don’t know whey $KGJI is not getting any respect at all from speculators and investors; but it seems like my money had been tied up unproductively all these time I was holding it.  Thus, I decided to let it go and use the proceed to add more $SVBL.  Yes, I’m redirecting the focus from gold related stock such as $KGJI to silver mining.  $SVBL doesn’t do mining but they do own a prime piece of land in Northern Mexico that supposedly has a lot of silver underneath the ground based on exploratory result.  However, by day end, $KGJI spiked back up so I bought back a starter position.  I believe earning report is coming next week so let’s see which way it goes.  So far, I’ve missed two positive earnings play by closing out $KNDI and $SVA before earnings.  Oh well, it is still a gamble so I preferred to play safe.

I also reduced my positions on $SEED by 80% to reduce China exposure.  It seems that the politic in China may take a much longer time before deciding on the genetically modified seeds offered by $SEED.  Interest is fading and price is slumping back down.  The bids were there so I took it.  I also used the proceed to add more $SVBL.

Why the sudden interest in $SVBL?

For one, the super high volume (over two million shares traded) on March 13th got my attention.  $SVBL is a buy-out play so volume of that magnitude meant someone was interested.  It may or may not mean anything but I feel the “pull” to accumulate this stock.  I also believe the market, in general, is going to correct pretty heavily this year and that precious metals will become a popular safe-haven again to speculators and investors to jump back in.  Thus,with this thesis in mind, I added to $SVBL.  I could be wrong but this is the play I’ve chosen to follow.

SVBL_daily

See how price bounced right back up from the 79 & 89 MA lines?  The stochastic also began to turn up from below.  If I’m going to hold a precious metal related stock for a long duration waiting for something to happen, I’m going to give $SVBL a chance giving that $KGJI gold stock didn’t do much for me after all this time.

Currently, $SVBL is my third largest position after $LRAD and $MZOR.  $CARA dropped to fourth position giving recent correction.  In my own theory, $SVBL is my portfolio hedge against a major market correction- irrespective of rather my theory make sense or not.  You should know by now that I take a stock position based on my personal theory and logical deduction of what I think is happening or will happen.  I collected information from other contributors and weighed their opinions with my own analysis.  I then make my own decision to plan the trade- buy, sell, or hold.  I do NOT care what other people are doing with their position of the stocks I’m holding.  I make my own decision by looking at the chart and reviewing the latest updates.  Sometimes, I time it right and sometimes I don’t; but I always have to be mindful of managing the risk.

I was just glad that my $TZA position didn’t get stopped out during the morning rally.  It was nice to see it closed positive.  If the market continues to slide next week, I’ll add to this position as soon as cash is available from the three-day settlement.

Needless to say, with $LRAD, $MZOR, $CARA, and $SEED corrected today, my port suffered another setback but was cushioned nicely by the gain on $SVBL.

Current holdings:

LRAD, MZOR, SVBL, CARA, TZA, SEED, KGJI and 26% cash.

From my other account:

$FITX had a nice bounce today.

FITX_daily

Although price could not stay above $0.10 and closed at the lower $0.09x range, I was just glad to see it closed positive today and for the week as well.  If $FITX executes flawlessly going forward after receiving the license from Health Canada, there is a possibility that this port will eclipse my main port discussed above.  I look forward to see that happen.

My 2 cents.



Categories: Daily trading Journal

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