03-26-2015 Journal- $CERS, $LRAD, $AMRN

Experiencing first hand, this is one heck of a stubborn bull.  Expecting the bear to drag the bull down the waterfall, I shorted the E-mini SP500 as if it was a brainless exercise.  At first, I was making money (daytrading profit) with ease; but as I started to short each bounce near resistance as is customary to do so for a falling market day, I kept racking up small losses from getting stopped out.  Each re-short at higher resistances kept getting stopped out against me.  Then it struck me that this bull is far from rolling-over.  I stopped my shorting campaign and considered the daytrading losses as a fee for market information.

DJ-30 daily

While the bull did fight its way back up, it still could not close positive.  The bear still has its grip on the bull leg for the moment.  Can the bull shake off the bear grip tomorrow?  We will see if the bull can climb back above the 79 & 89 MA lines tomorrow.  it is important that it does to close the week.

Well, seeing that the bull was stubborn and tenacious in climbing back up against a downdraft gale, I began to buy back $AMRN and $CERS.  Remember, I sold them yesterday not because I didn’t believe their fundamental, I sold because I was afraid of a possible major market waterfall action from the bear attack that could bring down most stocks along with it..  Since there was no follow-up and my shorting campaign with the mini-SP500 was unsuccessful, I was convinced the bear was losing its mojo to push the market down any further.  Hence my buying back the two biotech stocks.

AMRN_daily

After $AMRN hit the low of $2.22 and started to bounce back, I began to buy back my shares.  By day close, I bought back all shares I sold yesterday plus some.  While price closed near the low of the day, it was now being support by the middle Andrew Pitchfork’s line.  Let’s see if it will bounce off this line tomorrow.

At first I didn’t want to buy back in $CERS yet; but I was amazed at its ability to stay above $4.00.  And then price began to climb above the 79 & 89 MA lines on the 5 min chart which to me was a strong bullish message.  Having got my paid-for “market-information” from the E-mini to support a possible bullish tone, my hesitancy to buy back $CERS was gone.  See how price started to climb after reaching over the 79 & 89 MA lines on the 5 min. chart below:

CERS_5min

At first, I didn’t want to commit too much capital; but after seeing the persistent rally in the 5 min chart, I started to buy back my entire position I sold yesterday plus some.

CERS_daily

From the daily chart above, today candlestick chart can be called a bullish engulfment bar.  This is a potential bottom formation if tomorrow price action can close above today high.

$LRAD was able to fight off seller and closed positive albeit only slightly.

LRAD_daily

I’m glad to see price closed above the uptrend line.

Thanks to $CERS continued rally after I bought back in, my port was able to gain back 0.7% despite $AMRN further correction after I bought.  YTD gain is now at 16.9%.

Current holdings:

CERS, LRAD, AMRN and 9% cash.  (Notice that $CERS is now my largest position)

My 2 cents.



Categories: Daily trading Journal

Tags: , , ,

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