04-02-2014 Trading Journal

The market was beating around the bushes all day deciding whether to go up or down until closing time when it closed higher.

SPY_Daily

Price now is hitting against the resistance of the previous high for the 3rd time.  How it behaves next two days will provide clue on how commit this bull is.  Whether the phrase “3rd time is a charm” is meant for the bull or the bear remains to be seen.

Due to the indecisive behavior of the market during the day, I decided to jump the gun and take the safety approach by closing out positions to reduce my portfolio risk.

Seeing that $CARA was having a hard time staying above $20.00 after reaching as high as $20.70, I decided to close my positions to lock in gain.  I started hitting the bids piece by piece slightly under $20 and was happy to get out without dropping the price.

CARA_daily

Another reason I sold $CARA was because price crossed the resistance at $20.40 established in 3/19 and fell off. Because of the small float and lack of liquidity, I took the opportunity to sell when there were strong bids to take my sales.  Yes, I may miss the rally from here but that is the price I’ve to take for playing safe.

I also sold the followings:

  •  $SVA to cut losses
  •  $SEED to lock in gain
  •  $AMRN to cut losses

To hedge against my other two remaining positions ($LRAD and $SVBL), I bought $TZA and $FAZ.

Thanks to gain on $CARA today, it offset most of the losses from $LRAD, $AMRN, and $SVA.  Thus, my port was almost breakeven for the day.

Current holdings:

LRAD, SVBL, TZA, FAZ and 48% cash.

From my other account:

$MCIG took a small tumble and gave back yesterday gain while $FITX remained neutral.  Not much to write about.  Still holding long and strong.

My 2 cents.

 



Categories: Daily trading Journal

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