04-06-2015 Journal- $LRAD, $AMRN

Just when the bear walked right back into the bull’s backyard during sunrise, the bull had enough.  It rushed out with such ferociousness that the bear ran for its dear life.  Imagine the bear as a burglar and the bull an ex-Navy Seal with a 10 gauge shotgun.

DJ-30 daily

Ok, so the bull has a spike.  But is this for real this time?  I say the jury is still deliberating.  From the chart, today up bar is still below the downtrend line from the top Andrew Pitchfork line.  Price needs to penetrate this downtrend line with strong conviction so as to move away from the Pitchfork pattern; otherwise, a down day tomorrow will only confirm the tenacity of the bear momentum which will also create a fourth lower high.  Tomorrow will be an interesting day.

$AMRN rallied today but I couldn’t add more even if I wanted to.  Because I’ve a cash account, my in-and-out of $AMRN last Thursday created a three days settlement lockup of my cash..  My closing out of $SPXU and $TZA last Thursday after a day of holding also tied up my remaining cash.

Why do I’ve a cash account instead of a margin account?  

Since I’m in the habit of swinging for the fences, the cash account is a form of circuit breaker to prevent me from over-trading and over-extending myself.  In lieu of using margin to maximize gain on stock movement, I use cash to load up on high-beta stocks that can move violently up or down.  With a cash account, I don’t have to worry about blowing up my account due to over-extending on margin.  My worst case scenario would be that I lost a chunk of money when one of the companies I’ve a stake in file bankruptcy; but the account will survive.

AMRN_daily

From the chart, today rally was of relatively low volume.  Price will need to climb over the middle Pitchfork line to maintain the strong bull momentum; otherwise, price will trade in a consolidating range b/w $2.20 and $2.50.  I’ll look to buy back some when cash is released from the three days hold providing that $AMRN can maintain the bull momentum.

$LRAD had a nice rally with relatively high volume.  Despite some give-back on gain before closing, the trend is definitely heading back up.

LRAD_daily

The next challenge will be the 79 & 89 MA resistances.

Thanks to gains from $LRAD and $AMRN, my port gained back 1.4% for the day.  YTD gain is now at 17.1%.

Current holdings:

LRAD, AMRN and 61% cash.

My 2 cents.



Categories: Daily trading Journal

Tags: , ,

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