04-04-2014 Trading Journal

Today the market played a cruel joke by opening higher to make another new historical high that lasted for about two hours before collapsing into a waterfall pattern.

SPY_Daily

It was a blood bath through and through.  Although I did not know if it would drop today I was certainly prepared for it.

At first, the higher open had me questioning my wisdom of holding the $TZA position coming in from the morning.  Then I remember the old saying, “fool me once, shame on you; fool me twice, shame on me!”.  This was related to the incident from the last time I bought $TZA back in late March when I closed my position at breakeven due to higher open and then had to watch the market turned south for the next four days without me on board.  Thus, with this recent memory, I decided to give this one a bit more time before I closed the position to cut losses.

Thanks goodness I waited.

When price began to fall, I added more $TZA.  I also bought back $FAZ to increase the hedging positions.

That’s correct, I didn’t buy $TZA or $FAZ to make net gain, I bought them to offset any potential losses I might incur due to my holding $LRAD and $SVBL.  I held a lot of shares on these two positions and they are not exactly very liquid.

$GWPH was taking water and began to sink.  After seeing it was $2 against me, I dumped it without hesitation to cut my losses.  Good thing I did ’cause price dropped more than $2 bucks for the day.

I also sold $SEED to take small losses while I was at it since I expected most stocks would get hit with sell signals in a general down market.  For those who got the selling bug, the infection could easily spread to other stocks in the portfolio.   However, by day close, I could see $SEED bounced back up like a coiled spring.  I may have to buy it back Monday if the underlying bullish tone is still strong.

Thanks to my previous action of playing safe, I was able to escape today blood bath with only a small scratch.  The gain on my $TZA offset the losses on $LRAD; and the gain from $FAZ was able to knock off a chunk of the losses from $GWPH and $SEED.  The result was a small losses overall for today bearish action.

Current holdings:

LRAD, TZA, SVBL, FAZ and 44% cash.

From my other account:

I decided not to sell any of my cannabis stocks (both $FITX and $MCIG) during today bear attack due to the upcoming catalysts on both stocks.  $FITX will soon complete all requirements to seek Health Canada approval for a license and $MCIG will soon launch the sales of Vita-cig in late April.  I do not want to be without shares for these two major catalytic events.

My 2 cents.

 

 

 

 

 



Categories: Daily trading Journal

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