Market corrected today and gave back about four days of gain.
If you look at the chart pattern inside the consolidation range, do you see a head and shoulder in development? If price takes out the lower band of the consolidation range, the market is in trouble. If price takes out the previous low at April 11th, it will be bad. But these are all “ifs”; so let’s not get ahead of ourselves here. As long as price stays above the 79 & 89 MA lines, I’m leaning on the bullish side.
I didn’t do much today except to add a bit more $AMRN and $APRI which closed down for the day. I’m going to give these two a bit more room to breath instead of trading in and out quickly. I want to hold these twos for a longer term to see if fundamental can take them back up; so I’m going to give it some more room. Last time I traded in and out of a stock I missed out the spectacular rise of $GWPH. So, I’ve learned my lesson once again.
$DMRC opened lower and then dropped like a rock when somebody dumped a thousand or so shares at the market, but that was a fake low since the next trader who bought a couple of hundred shares had to pay much higher than the intra-day low. This is what you’ve to deal with when you are holding a super low-float stock. I don’t mind it at all since I believe once the fundamental story begin to take hold and embrace by the market, price will be on the up and up. I’ve got a good feeling about this one the same way I had a good feeling about $LNG. My mistake was that I allowed the volatility of $LNG got the best of me so I bailed with a small profit and missed the biggest rally ever. This time, I’m going to hold on to $DMRC despite volatility.
See how price had regained much of the downdraft by closing bell? Today bar looked like a dragonfly doji; this pattern has a high probability of being a market turning points. Let’s see if this is the case here.
It was strange that $SVBL did not follow the silver trading pattern today which was up slightly.
This must be an aberration due to some motivated sellers trying to raise some cash. I’m holding this one the way I’m holding $DMRC and $LRAD ’cause I believe flight to precious metal may happen this year. I don’t know when but it may happen.
Due to $SVBL and other minor corrections of the rest of the positions, my port was down again.
$DMRC, $LRAD, $SVBL, $SEED, $AMRN, $APRI and 30% cash. YTD gain is now 7%.
From my other account:
$FITX bounced nicely today.
Now, the long-standing resistance is only a stone throw away. I believe money flow coming from people who sold $PHOT was driving $FITX up today.
My 2 cents.
Categories: Daily trading Journal