03-16-2015 Journal- $CERS leading

Today spike up was a good way to kick off the week.

DJ-30 daily

Price is now on top of both 79 & 89 MA lines.  The only resistance is the 15 MA line above.

$AMRN gapped up but could not hold on to gain.  While I was very confident last Friday regarding holding on to my position and not taking profit, the waterfall action in the first 20 minutes after the higher open changed my mind completely. From my experience, a waterfall action after a gap-open usually mean we were in danger of running out of buyers pushing the stock higher.  Unlike the other previous two trading days of strong buying, there seemed to be more sellers than buyers despite huge volume.  Since I was sitting on huge profit, I had a sudden urge to take profit to preserve my gain.  I still remember very clearly how I missed taking profit when $LRAD spiked many days and peaked out at $3.88 before the waterfall action back in last September.  While I still hold a strong conviction in the fundamental story behind $LRAD and $AMRN, I did not want to repeat the same mistake I made with $LRAD.  Of course, since I’m holding only 10% of my original size on $AMRN after today close, I may end up chasing the stock if it resume the rally tomorrow.  But I’m satisfied that I locked in my gain today.

AMRN_daily

When a gap-up resulted in waterfall action, you would see a red candle bar like the one above.  While this single red bar alone doesn’t mean trend has changed, there may be a correction coming if price takes out today low tomorrow.  However, if price bounce back up instead of taking out today low, I may start to buy back some shares.  If it goes lower, I’ll be looking to buy back shares to start the accumulation process again.

With the proceed from sales of $AMRN, I used some to bulk up $CERS.  I’d lightened up $CERS before to buy more $AMRN; now I’m doing the reversed.

CERS_daily

Fortunately, price bounced today after I added.

$LRAD gave back Friday gain.  However, I noticed that the CEO exercised 75,000 shares last Friday but did not sell yet.  Perhaps he is confident that his trip to the Middle East is a success.  We will find out if that is the case.

LRAD_daily

Let’s see if it will bounce tomorrow.

$TINY spiked up but lost all gain by day close.

TINY_daily

I need to decide if I want to hold this stock after I study the financial that was released today.

Thanks to $CERS up day and morning gain I took from sales of $AMRN, my port gained another 0.9% despite a red $LRAD day.  YTD gain is now at 19.4%.

Current holdings:

LRAD, CERS, TINY, AMRN and 32% cash.

My 2 cents.



Categories: Daily trading Journal

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