04-01-2015 Journal- $LRAD, $SPXU, $TZA, $AMRN, $CERS

There is a bear eating up the flowers on the bull’s backyard.  Henceforth, the flowerless green pasture becomes a little blanched.  “Hey, there is a bear in the backyard!”

I was quite excited to see the SP500 recovered most of the after-hour losses of almost 15 points before the market opened.  With an expectation of another up day, I was dumbfounded when the market immediately cascaded into a waterfall after the open. “This is not good!”  I began to liquidate $AMRN and $CERS to raise cash.

DJ-30 daily

As can be seen on the chart, the morning fall-off dropped below the 79 & 89 MA supports.  This down leg was also confirming the formation of the 3rd lower high. Although the bull was able to recover some ground before closing, it closed below the 79 & 89 MA resistance.  I’m seeing a correction that can easily become serious (or not) and the momentum swing seems to be leaning on the bear side.

Sensing a shift in the direction, I began to buy up $TZA and later $SPXU to short the general market.

TZA_daily

$TZA did not look too good in the chart.  If there is no further dropping, I may have to cut losses on this one.

$SPXU looked a bit better. At least, it closed higher.

SPXU_daily

You can see the symmetrical triangle being formed.  If it break to the downside, I will cut my losses.  If it breaks to the upside, it may climb above the 79 & 89 resistance.

$AMRN was quite strong while I sold my shares.  So strong that I paused to wonder if selling was the right thing to do.  But my desire to raise cash overcame my wanting to hold on to $AMRN.

AMRN_daily

Seeing that price actually stayed in positive territory in the latter half of the day, I decided to buy back 30% of what I sold.  Let’s see what happen tomorrow.  If the DOW continues to drop tomorrow, I may just sell the 30% to raise cash again.

$CERS was much easier for me to sell.  Easier in the sense that I did not have any “wanting” to hold on to the shares.  With general market correcting, I figured $CERS would drop faster due to this stock being heavily shorted.  It is pointless to fight the current when the boat is inside enemy territory; hence, my getting out of the way pronto.

CERS_daily

The chart doesn’t look good.  Today big red bar could gain momentum to take out the trendline shown.

I’m impressed with $LRAD ability to ignore the sounds of the falling timbers.

LRAD_daily

The chart looks like it is just another normal day. One of these days when I wake up in the morning, I’ll see news that $LRAD has won a bid on one of the two large Middle East cities.  That will be the day to watch some action.

Due mainly to losses from $CERS, my port gave back 1.85% for the day.  YTD gain is now at 16.6%.

Current holdings:

LRAD, SPXU, TZA, AMRN and 31% cash.

My 2 cents.



Categories: Daily trading Journal

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