03-13-2015 Journal- $AMRN leading!

Despite a down day, the bull did fight hard to climb back to close at mid-point.

DJ-30 daily

What’s more important is that price now closed above the 89 MA line.

From the weekly chart below, it’s a 50/50 that price may continue to drop or it may bounce.  Hard to tell.

DJ-30 weekly

The good news is that price is still above the steeper short-term uptrendline which is bullish.

Wow!  $AMRN’s performance today exceeded expectation after yesterday up day.

AMRN_daily

Look at that rocket ship!  And I’m so glad I loaded up BIG on this one before the blast-off.  Normally, I would have taken profit from here as I had done so with $IBIO and $INO in the past when they made move like $AMRN did today; however, unlike $IBIO and $INO where the potential was based on ebola fear and animal tests respectively, $AMRN potential is based on real cardiovascular benefit in human body where a previous Jelis study from Japan has already proven efficacy.  Thus, IMHO, this blast-off move in $AMRN has only just begun.  I’m holding my shares.

Normally, I would post a weekly chart below but since the weekly chart won’t show daily gap, I’ll show a compressed daily chart that shows the gap (oval blue shaded area on the left) below:

AMRN_weekly

You can see that the top of the gap before the drop is at $4.50, I believe that is where the price action will go in the following weeks.

$CERS made another positive close after hitting the new weekly low.  It was a good effort and perhaps it is finding a bottom here.

CERS_daily

Let’s see what next week will bring.

$LRAD bounced back some today as expected and last December support was used as a trampoline.  Nevertheless, if you look at the weekly chart below, you can see that the longer term bull trend is still up.  Price merely bounced off the strong weekly 79 & 89 MA support lines.

LRAD_weekly

With some good news, price will roar back up in no time.

$TINY also bounced up today after making the new low for the week.  The weekly chart below shows that price is bouncing off the weekly 79 MA line which is also where the 15 MA line is.

TINY_weekly

From the look of the chart, the overall current trend is still up despite the recent two red bars. Let’s see if it will continue to bounce up next week.

With $AMRN continued blast-off today and its being my largest position, my port gained a whopping 12.6%.  YTD gain now is at 18.5%.

Current holdings:

AMRN, LRAD, TINY, CERS (100% invested/speculated)

Now you know why I focus my fire power in only a handful of stocks.  While it is extremely risky to trade the way I do, it is also very rewarding if you hit the ball solid that could give you a home-run.  With my trading strategy, it is all in the stock selection and my conviction in the fundamental story behind the stock.  Timing is quite important as well.  $DMRC, $ORBC, and $CERS were evidence that I went in too early and had to cut losses to free up dead money. While I was also two years too early in $AMRN which I had to cut losses before; I never stopped watching and was constantly looking for a bottom to buy back in.  As it turned out, the falling price was a blessing in disguise since I bought back many times my original size due to cheap price and now I have the potential to make a whole lot more money than if $AMRN had blasted off two years ago.

IMPORTANT NOTE:  Noticed that I had to cut losses in $DMRC, $ORBC, and $CERS when I realized the fundamental story was taking too long to develop.  This realization could be subjective in nature so hard decision had to be made. And it is thru cutting losses that affords my taking extreme risk without blowing up my account. There were no doubt that if I hadn’t cut losses in $DMRC, $ORBC, and $CERS, I would not have the money to load up on $AMRN.  In summary, it is IMPORTANT to cut losses as soon as you feel the wind is shifting even as the risk of missing the train.

My 2 cents.



Categories: Daily trading Journal

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