10-13-2014 Trading Journal

And the bear kept on dragging down the bull…

SPY_Daily

Price is now in the neutral zone (the tan rectangular box).  This is the same area the market struggled b/w March and June before breaking out to the upside.  I didn’t like the fact that the double bottom couldn’t hold.

I was curious about how $IBIO would open.  I was pleasantly surprised that pre-market was up $1.30 (88%).

“Take the money!” I shouted at myself.

Then I realized I could not get out even if I wanted to ’cause my cash account does not allow pre-market or after-hour trading.  So, I crossed my finger hoping the pre-market high would hold thru the opening bell.  No such luck.

Then I had to witness the falling prices (from $2.7x to below $2.3x) in the last five minutes before the opening bell.

“Take the money anyway”  I told myself.

So I put the market order in and sold the rest of my $IBIO at the open.

Why didn’t I wait?

That was because I’d seen too many times where price gapped up and then would spend all day falling back down.  I decided to take the money and saved myself the grief and anxiety of worrying about giving back profit when I wasn’t looking.  I actually felt a sense of relief after taking profit.  In biotech, there is no telling when price will turn on a dime and simply take away your paper gain in a NY minute.  I’ve overstayed too many times and experienced enough vanishing profit to appreciate a generous gift when it appeared without notice.  Sure, price may continue higher but I leave it to those who can bear the pressure.

IBIO_daily

That was a really nice gap up.  Let’s just hope there is no gap down tomorrow for the sake of those who are still holding.

Today, four out of six positions went up. Unfortunately, $LRAD was not able to maintain gain in the last hour market avalanche.

$CERS finally turned green so I didn’t need to cut losses.  $DMRC and $ORBC were able to maintain most of its gain for the day despite the market waterfall.

The gains from $IBIO, $DMRC, $ORBC, and $CERS were able to offset $LRAD drawdown and still  have a gain of 2.2% for the day with YTD gain at 2.3%.

Current holdings:

LRAD, DMRC, ORBC, CERS, AMRN and 10.5% cash.

My 2 cents.

My reminder:

Wisdom from Warren Buffet:

“With a wonderful business, you can figure out what will happen; you can’t figure out when it will happen. You don’t want to focus on when, you want to focus on what. If you’re right about what, you don’t have to worry about when”



Categories: Daily trading Journal

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