I guess the “urge” to correct has been satisfied. It is like scratching that itch on your back. Do you remember what you did after you had scratched the itch on your back? Yeap, your itch was gone and you moved on back to what you’d been doing. But the question is, “has the itch gone after the market scratched its back today?” We will know soon enough next week.
A slight dip today was kinda expected. The next support is the previous high in late December; but I doubt it will go there.
From the weekly chart below, a doji candlestick bar is formed. This doesn’t mean it is the top, it can also mean it is a pause. Next week bar action will provide more clue if this a doji pause in a continuing bullish pattern.
An overall bird-eye view on the weekly chart is technically very bullish.
Let’s talk about my $CERS position first. Although I mentioned that I wouldn’t sell any shares yesterday, I’ve decided to change my game plan a bit by unloading 2/5 of my $CERS position (after it dropped below $5 support) and bulked up on $AMRN and $TINY. When $5 couldn’t hold, I actually unload 3/5th of my position (b/w $4.9x and 4.8x) with the idea of buying the 1/5th after the panic selling died down. Thus, with price stabilized around $4.6x, I began to buy back the 1/5th.
My rationale for shifting money out of $CERS to $AMRN and $TINY is simple. Since $CERS broke below $5 support, the current short-term bias is down. Meanwhile, both $AMRN and $TINY are both bullish in the uptrend. Thus, it makes sense to shift some money from my 2nd largest position ($CERS) to the smaller size positions with better bullish bias. After the shift, both $TINY and $CERS are close in investment size with $AMRN being the 2nd largest position.
From the weekly chart above, $CERS took a tumble but found support at the weekly 79 MA line. Notice that price is still on top of the uptrend line. If they keep the new blood banks signup coming over the course of the next few months, price will surely bounce from here.
$AMRN ended the week closing above the resistance it could not broke out of last week.
While there is a long tail above it, it is still a solid green weekly bar close. Notice that both 5 and 15 MA lines are pointing up. Next resistance is the $2.09 established back in mid-September of last year. I added more $AMRN from using remaining cash plus sales of some $CERS.shares. $AMRN is now the 2nd largest position in my port.
$TINY has a strong week! After taking out the 79 & 89 weekly resistance last week, price never looked back and charged full speed ahead to not only took out mid-September resistance but went an extra mile to close much higher than the resistance (now support). This is a stock with a lot of buyers wanting to get in. If there are going to be IPOs coming out from its portfolio of private investments, $TINY may finally see the blue sky after years of going nowhere.
From the weekly chart above, you can see the next resistance is at last year mid-March high of $3.94. I believe it will be a piece of cake blowing past that if any whiff of IPOs is in the air. I’m particularly excited about the D-Wave Quantum computer investment $TINY has in its portfolio. If this quantum computer technology can show proof of concept, it will be a billion dollars companies in a short-period of times. And $TINY ownership of its shares will be worth a whole lot more than its current market cap.
$LRAD weekly action is neutral . Hey, I take a neutral week over a down week.
Price is still above the uptrend lower Andrew Pitchfork line. With March coming around, we will soon know if the CEO trip to Middle East to personally demonstrate the mass notification system yields any positive result.
Due to $CERS down day but with allocation of 2/5th of $CERS fund to $TINY and $AMRN, the gains from the latter two helped cushion the loss on my port which resulted in a narrowed losses of 0.50%. YTD losses is now at 2.5%.
LRAD, AMRN, TINY, CERS and 3% cash. (I’m debating whether to use the 3% to add more $AMRN or $TINY next week).
My 2 cents.
Categories: Daily trading Journal