03-24-2014 Trading Journal

The market took a big dump in the back-office while the DOW was showing some light selling. The disparity was quite telling… It reminded me of the war movie where the enemy had infiltrated the military camp and caught everyone by surprise. Meanwhile, the king and the queen was totally oblivious to the slaughter that was going on while dining on monkey brain and bear paws in their sheltered castle protected only by a few eunuchs whose daily thought were occupied by a dream that one day a famous Taoist with magical power would come by to grant their wish of having their penis restored back into their original shape and size.  Thus, they were no match to the enemy whose only thought was to cut their head off… the big one, of course, since the small one was already gone…

SPY_Daily

As you can see on the daily chart above, price had sunk deeper into the consolidation range.  It closed below the low of the last five trading days.  Will it bounce tomorrow?  Who know.

Meanwhile, seeing that my $TZA position bounced hard after the open and took out the high of the last few days, I immediately double-down on my speculation without hesitation.

TZA_daily

See how $TZA had bumped into resistance from the previous high and fell back?  Price needs to take out that resistance before heading higher.

Because I was committed to my $TZA position, I’d to follow through to reduce my long position to reduce risk and exposure.  While $TZA was a counter-trend to short, it is a poor hedge.  It would take a huge position to even come close to hedging my long; thus it would be prudent to reduce my long positions pronto.  Therefore, I sold all of $MZOR and the rest of my $KGJI and $SEED.  I also reduced my $CARA position reluctantly since I could be selling this small float stock at the bottom; but safety prevailed and the thought of buying them back at low teens helped me pull the trigger.

After the dust settled, I ended up holding only $LRAD, $TZA, $SVBL, $CARA and 46% cash.

Despite the port being down a bit over 2% today, my year-to-date gain is at 14%.  While I can still see my milestone high, it is a bit too far for a stone-throw. I’m going to have to work hard to climb back up to reach it.

From my other account:

I could not believe the day would come that I sold $FTIX… The injunction issued by the court to allow home/local growers to continue on growing their medical cannabis until the case go to trial later in the year put a wrench in my conviction of holding $FITX steadfastly.

While one could argue the injunction is good for $FITX since it would allow additional time for them to complete the facility and grow their crops, I’m more concerned on the limited buyers (only new patients are required to buy from commercial growers) and the real possibility that the home/local growers will prevail in the trial to come.  In other words, Health Canada new policy is no longer a 100% sure thing.  With the kind of float out there and the release of restriction for insiders to sell their shares in April, I’m just glad that I was able to sell today without taking losses.

However, I’ll be watching the cannabis sector to look for opportunity to jump back in.

My 2 cents.



Categories: Daily trading Journal

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