Ping pong anyone? That what the market wanted to play.
In response to the ball from the bear, the bull sent it right back. Chart actually looks encouraging for the bull since price closed above the resistance. Now, i would not be surprise if tomorrow is a down day. After all, it is the game of ping pong we are playing.
Today, I bought a position on $CLDX, a stock I used to trade successfully when it was under $6. After missing the whole ride to the top of $38 and changes, I’m now giving the opportunity to catch the ride at this level.
Looking at the chart above, we find support that go all the way back to May of last year. I’m betting that today mini-bounce will turn into the next leg up to start the 3rd wave of the 5-waves Elliot Wave theory. If it takes out the high of the 1st wave, I may add more if I’ve cash left.
Next, I bought $FSLR.
Did you see the support that goes all the way back to May of last year? There are also strong supports at this level back in Jan and March of this year. Thus, the odd of bounce is pretty good.
$DMRC dropped some today and price is now at the 89 MA support line.
I like to see the support hold and price bounces off from here.
$LRAD corrected a bit after three days of rallies.
Price came back down to support. Let’s see if it can bounce tomorrow.
Due to drawdown from $DMRC and $LRAD, my port dropped 1.4% today. YTD gain is now around 5.6%.
LRAD, DMRC, SVBL, KGJI, SEED, FSLR, CLDX and 13% cash.
From my other account:
$FITX opened lower and I was tempted to buy bottom. But I decided to wait instead of catching a falling knife. Later in the day, price began to climb back quickly above $0.05. This convinced me that the buyers were coming back. I began to buy back some position. Even though I wasn’t buying below $0.05; I was still paying less than what I sold for earlier. As long as the momentum continues to head back up, it doesn’t matter that I didn’t buy it at the bottom. I’m buying the momentum that gives me better odd of riding the trend.
Today chart shows a very nice bullish engulfment candlestick bar. If they announce news of license approval, today low will become the bottom.
My 2 cents.
Categories: Daily trading Journal