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.
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