03-28-2014 Trading Journal

The market bounced hard in the morning but went out of air later in the day.  Nevertheless, it still closed up for the day.


You could see that it was a soft bounce. We need to see the market bounces hard next week to stop this bear attack from taking over the trend.  Based on after hour market on a Sunday afternoon, look like we may see a bounce coming.  But then, we all know too well that these bounces must stay firm at the close to consider a good bounce.  How the market closes tomorrow (Monday) may determine the tone for the rest of the week.

What I had done today (Friday) was a mixed bag of satisfaction and disappointment.  More like getting satisfaction in the morning and then being slapped with disappointment.

$KNDI opened higher and I immediately added more to average up.  Price continued to head higher and I added more.  By the time price broke out of the $17 resistance, I added even more.  My profit was immediate and it was looking good.  But then price began to correct below $17.00.  I continued to hold to see if it would bounce back above $17.  It did.  I relaxed a bit.  But the hold above $17 didn’t last.  Before I knew it, price fell back down below $17 and I wanted to see if it would re-bounce later; unfortunately, while I was waiting, price began to collapse like a waterfall and before I knew it, I was no longer in the money but was shown a little red.  Without hesitating too much, I began to liquidate some of my position to decrease risk and exposure.  Price continued to head lower and I decided to just dump the whole position ’cause I didn’t like the way price fell down so quickly from the $17.00.  Thus, from the morning of sitting on a nice profit to the liquidation of my position with a small losses, it was quite a ride.  By day close, price closed a bit below my last exit point.


See how price collapsed in mid-day in the 5m chart above?  It was a heady ride.  While I still believe in the fundamental story of $KNDI, I’m being mindful of the overall market correction which if the bear wins, everything will go down regardless of fundamental story.

Next, I bought back $SEED, $AMRN, $CERS, and $MZOR positions.

What?! $CERS again with the $40 million  potential dilution?

Yes, I asked myself the same question… but all I could say was that I couldn’t resist the morning chart pattern which was showing a bounce from a “almost” doji bar the day before.  Due to the fact that I closed out the $CERS position (again!) with another small losses before day close, I guess the “almost” doji bar did not offer a good probability here.

I bought $AMRN ’cause the chart looked like a breakout bounce was about to happen.


Thursday bar was a bullish engulfment candlestick bar; therefore, I decided to give this one another roll of a dice.  Thanks to Option Addict’s post about asshole stocks, it brought my attention back to $AMRN which was when I saw the bullish engulfment bar.  By day close, I’m still holding so let’s see if price can bounce next week.

Next I bought some $MZOR back due to a bounce at the open.


Since I still like the fundamental story, I was betting on the fact that the Thursday dramatic drop was over-done.  If price takes out the low of Thursday low, I will cut my losses.

$CARA dropped was expected due to earning report from Thursday night; however, I was just glad that the drop was not worse than I anticipated.  I believe $CARA has the potential to rally later in the year simply because the fundamental story has an excellent catalyst to be disruptive in the field of narcotic pain-killer.


Notice that the price action on the daily chart was stabilizing despite a down day.  If the general market recovers, I can see $CARA bounce higher as well.

Thanks to $LRAD uptake on Friday, my port was at breakeven despite $CARA being down.

Current holdings:

LRAD, SVBL, CARA, SEED, AMRN, MZOR and 32% cash.

From my other account:

Both $FITX and $MCIG charts reflected a small correction; thus, I’m not going to bother with the showing of the charts.  Still holding long and strong.

My 2 cents.

Categories: Daily trading Journal

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