04-21-2014 Trading Journal

Market continued higher in a slower and cautious speed.

SPY_Daily

Another green bar boded well for $SPY. However, as you can see, there is a nearby resistance market has to overcome before heading higher.  The middle blue parallel lines is what I’m talking about.  Did you see the previous highs clustered around March 18th to 26th, and then again at April 9th and 10th?  Tomorrow we will know if price will break thru the resistance or drop back from bumping its head against resistance.

Today, I was shaken out of a few positions during the morning mini-collapse 40 minutes after the open.

At first, I added to $KNDI ’cause prices were heading higher like a trapped bull finally running free of its cage.  I added quickly and aggressively and was in the zone.  Then, without notice, price began to fall fairly quickly.

“What the f***?”

Due to my aggressive buy, I almost doubled down from Friday position.  With the speed of the fall continuing to accelerate, I saw my unrealized gain vaporizing into thin air.  Trying to cut the position quickly so I didn’t have to eat a big losses from this “uninformed” drop, I started hitting the “Sell market” button one after the other.  Somehow, I got carried away and ended selling the whole $KNDI position.

“Darn!”

Looking at my remaining available cash (from three days settlement), there wasn’t enough to buy the original size back.  So I moved on.

Oh yeah, while I was dumping $KNDI, I took it upon myself to dump $GWPH, $CARA, and $FSLR as well.

BAD Mistakes!

Practically all of the positions I sold except for $GWPH would have put me in a nice gain today… but you know it wasn’t me talking now, right?  It was Mr. Hindsight who was speaking (typing…)

Anyway, at the times I was selling the positions mentioned above, I was merely re-balancing my port to accommodate the “possible” cliff-falling market action.  Since the cliff-falling did not happen, my re-balancing act was not needed.  I did what I needed to do at the time so it was nothing for me to “dwell” on.

The act of re-balancing was a mean to allow me to keep some of my long positions without too heavily invested.   $KNDI, $GWPH, $CARA, $FSLR all came in this morning as a medium size starter positions and they were meant to be the first to dump if I felt the market was turning back down.  Meanwhile, $LRAD, $DMRC, and $SVBL were my three largest positions in the port and I want to keep them large going forward; thus my non-hesitation in dumping the stocks mentioned above even though they all came back up by day close.

Before the dumping this morning, I also bought back some $CERS and added to $SEED.  Near the close, I bought back some $AMRN to take advantage of the lower price.  I decided to buy back $AMRN ’cause when I called the pharmacy to refill my Vascepa fish-oil, they were able to give it to me the same day.  In past, they always had to “order” them due to the fact that I might be the only one who wanted it.  Not having to “order” meant the pharmacy is stocking up Vascepa to handle demand.  Hence, my buying back $AMRN.  Pretty crude justification to buy but it was good enough for me to do so.

$DMRC.  I realized I had not mentioned why I selected $DMRC to be a major holding of my port.  I think this news should sum it up:

Digimarc Unveils the Digimarc(R) Barcode at NRF 2014: Significantly Improves Checkout Scanning Speed While Enabling Unprecedented In-Store Mobile Engagement

Here is what I like in the news announcement, “Top brands, including Cooking Light, Costco, Ford and Sharper Image are already using digital watermark technology in magazines, brochures, catalogs and food packaging to engage with consumers via mobile devices.”

Although this was old news from back in January, it was very relevant to me when I discovered it last week. The technology and the concept could not be more relevant in today proliferation of smartphones with internet access.  How convenient it is to simply point your smartphone to the article, TV, audio sound, or the product itself and capture the hidden digital barcode that will take you straight to the information website or even the shopping cart screen for you to place an order without having to go thru the steps of “googling” the product you want to know more about.

So I started buying.  Due to the very low float, this stock was difficult to buy in bulk without chasing it up.  So I bought some everyday for the last few trading days.  Wednesday will be earnings day and I’m taking a big risk buying into earnings.  If this takes off after Wednesday, I hit another home-run, and if it tanks after earnings, I may add more depending on the new information that becomes available.

DMRC_daily

From the chart, price is now getting near the previous resistance at $36.93 (or $37); let’s see if Wednesday earning will blow this resistance to pieces or my position into pieces…

Since I sold my trading stocks to cut losses in the morning times, I didn’t have enough gain to offset the drawdown from $LRAD and $SVBL.  However, gain from $DMRC did a good job reducing today losses.  Today, my port dropped 0.5%.

Current holdings:

LRAD, DMRC,SVBL, SEED, CERS, AMRN and 42% cash.

From my other account:

What more can I say?

$FITX continued to bounce higher anticipating  a positive Health Canada response.

FITX_daily

Price has to overcome the nearby resistance around $0.09.  Let’s see if it will take it out tomorrow.

My 2 cents.



Categories: Daily trading Journal

Tags: , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: