Today, the market took a correction and headed back down to the support line. Now, it is perfectly normal for a breakout rally (from resistance) to come back to test the “newly” minted support (formerly a resistance) before taking off again. The key question now is will this new support hold? Tomorrow, we shall see.
Today down day had me dumping losers in a hurry. I sold $KNDI at the open ’cause it opened down and I was already in the hole more than I should be. Trading discipline demanded that I sold to cut losses and I did. It is as simple as that. While the losses were bigger than I planned for, it should never be an excuse to hold for “better” price since it might not come.
$CERS was trading below $4 support so it was a no brainer for me to dump it as well to take small losses
$DDD was also trading down at the open so I decided to take profit instead of taking a chance to give it all back as I had been doing with some other stocks such as $NUGT. Sure, I wished I had wait a bit longer to sell at a much higher price but the market DEMANDED that you take the risk to see to it. And I’ve learned that you MUST RESPECT RISK at all times.
Having sold off some losers, I decided to buy some $TZA as a hedge. By day close, I’m up a bit on this position.
$DMRC corrected a bit today.
But if you look at the daily chart above, you will notice that it is now trading at the upper range of the symmetrical triangle pattern. A breakout of the triangle can end with a strong rally. We will see about that as well.
Today wasn’t a good day for my port, with $DMRC, $LRAD, $SEED, KGJI all corrected a bit, my port gave back 1.4%. YTD gain is now 7.2%
DMRC, LRAD, SVBL, SEED, AMRN, KGJI, TZA and 16% cash.
From my other account:
Seeing that price continued to head south before Health Canada approval, I began to suspect that there might be some weight regarding the zoning issue. So I decided to lighten up my position to reduce risk. If the zoning issue is real, $FITX is no longer the largest cannabis producer in the world simply because they are not allowed to build add’l facility to grow the volume of MMJ to become the largest producer.
After lightened up, I can now wait to see what happen. I may or may buy back shares I sold today. Later in the day. $FITX facebook included a link to a news that they have submitted an application to increase their building space to grow more MMJ. This release practically confirms the earlier rumor on the zoning issue. Oh well, nothing to do but to see what happen next.
My 2 cents.
Categories: Daily trading Journal