03-27-2015 Journal- $LRAD, $CERS, $AMRN

It must be because of Friday that the bull didn’t put its heart into shaking the bear off its leg.  By day end, while gaining an inch of upward movement, the bear still has its claw on the bull hind leg.

DJ-30 daily

Despite a green bar, it was not able to close above the 79 & 89 MA line.  There is still a lot of work for the bull to regain momentum.  From a weekly perspective below:

DJ-30 weekly

This week closed with a bearish engulfment candlestick bar.  While it doesn’t look good, the bearish engulfment bar needs the low of the bar to be taken out next week to confirm a “topping” signal.  In other words, the bull needs to head higher next week to close above this week low to negate the bearish sentiment.  Next week will provide critical information about where the market will head in weeks to come.

Yesterday, $CERS saved the day by carrying the port higher. Today $AMRN returned the favor.

AMRN_daily

Price bounced off the middle Andrew Pitchfork line nicely as if it was part of a movie script. Notice that today green bar is also a bullish engulfment candlestick bar; thus it is important that $AMRN provides another green bar next Monday to confirm the bullish engulfment bar as a bottoming pattern.  From the weekly perspective below:

AMRN_weekly

You’ve to admire the steep angle of the ascent on the weekly chart.  The fact that the correction did not close below the middle Andrew Pitchfork line is testament that this bull is very much alive; otherwise, the bear could easily drop the price below even the lowest Pitchfork line.  The fact that the bull can maintain price on the steep uptrend angle in this recent two weeks correction is a message all by itself- this bull run ain’t over yet.

While $CERS had a red bar for the day, it is still a higher low compared to yesterday.

CERS_daily

As long as we’ve higher lows going forward, $CERS should be fine.  It is now waiting for news of more blood-bank signed up.  From the weekly perspective below:

CERS_weekly

It isn’t encouraging to see a red bar for the week; however, it did not take out the low from two weeks ago and it managed to close above last week low.  In order for a chance to bounce, it is important that the bull fight hard next week to prevent the bear from taking it below the trend line.

$LRAD ended the week with a doji bar.  From the weekly perspective below:

LRAD_weekly

What I like about doji bar is that it can become a bottom formation when price bounces off from here.  What I like even more on the weekly chart above is that this doji is formed directly on top of the 79 & 89 MA lines that converged.  This is a powerful support and the probability of a bounce is very high next week.

Thanks to $AMRN strong rally today, it was more than enough to offset $CERS drawdown to squeeze out 0.8% gain for my port.  YTD gain is now at 17.7%.

Current holdings:

LRAD, CERS, AMRN and 9% cash.

My 2 cents.



Categories: Daily trading Journal

Tags: , , ,

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