Alrighty! The bull snapped back to the upside so hard that the bear suffered a whiplash… Yahoo!
At the look of the chart, all signals you can find all point to the upside. The DOW is going to make new high very soon.
$AMRN, after a day of doom and gloom, became a biotech darling again. Fortunately, I bought back 40+% of my original over-sized position after taking profit only two days ago. There is also something to be cheerful about $AMRN albeit a bit premature at this point- it “seems” that the judge is thinking along the same line of thought of $AMRN’s lawyer regarding FDA taking too much liberal interpretation of “active ingredient” under the new chemical entity (NCE) provisions of the Hatch-Waxman Act. To the FDA, “Active moiety” is equal to “Active ingredient”. If you want to know more, you can read here. Until the judge makes a ruling, there is really no way we know which way the judge will rule despite a similar mindset at the moment.
If the green bar continues tomorrow, we may have a strong continuing uptrend momentum. If the judge rules in $AMRN favor, be prepared for a rocket launch again. With a five years exclusivity offered by NCE status the prospect of BPs making offers is very high. Remember, it was this prospect that propelled $AMRN to near $20 a couple of years ago.
$SWIR continued the bounce from yesterday. To appreciate the symmetrical design that points to the favorable odds of higher price, take a look at the daily chart below.
Do you see the blue horizontal line in the middle of the chart that is also the support for the recent double-bottom bounce? Now, look to the left side of the chart. Did you see the peak and valley? The left side peak & valley acts as a powerful pivot supporting the blue line which in turn acts as a powerful support to the recent double-bottom bounce. Pardon my tongue twisting explanation of symmetrical support theory. Another way to look at this is that you can almost feel that there is NO WAY price will drop below the blue line. Simply because the symmetrical support theory forbids it. If you haven’t heard of the symmetrical support theory, it is because I just made it up. 🙂 My prediction is that $SWIR will see $70 before year-end.
$LRAD, out of pure boredom, went on an expedition of filling the gap that hadn’t been filled since August of last year. Well, today it pretty much filled “the gap” before bouncing back up to close at even. Having fulfilled its dream of filling the gap, I believe $LRAD is ready to play ball by running up.
Did you see that two high volume red bar to the right? That is the signal that the bottom is in. A candlestick close with long tail and high volume is a good candidate for a bottom-making candle.
$CERS is behaving like a rattlesnake. You could almost hear the rattle sound when it is still in the preparation mode. Preparing for what you asked? What is the rattlesnake doing when it is rattling its tail? Wholly Gosh! It is ready to strike at the bear with such vicious speed that the bear would think it only has a mosquito bite. The pain will, of course, come a few seconds later.
There is not much more I can say except to watch out for the snake springing action. Trust me, the snake will spring; it’s just that we don’t know when. I recommend that you sit a bit further away while watching.
Thanks to $AMRN and $SWIR bounces, my port gained back 2.8% for the day. YTD gain is now at 17.8%.
CERS, LRAD, AMRN, SWIR (100% invested/speculated)
My 2 cents.
Categories: Daily trading Journal