“Hooray!” bellowed all the farmers who had participated in the “blow the smoke” campaign to get the ox moving. The ox was literally running after the trail of opium smoke coming out of the singing farmers who were dancing with happy abandonment due to the effect of opiate high. It was like a scene of Follow The Pied Piper. And so the market had another nice green bar to close the week.
Look at that green bar taking out the last December high resistance with no problem. However, what we have here is only a good bounce and the bull has not gotten rid of the bear yet. This week rally could potentially set up for a possible third lower pivot high if the bear takes over next week. Therefore, it is important that the bull works harder next week to take out the 2nd lower high to cancel the lower pivot highs pattern momentum.
If the bull fails to win next week and a third lower pivot high appears to be forming (price must take out the recent pivot low before a 3rd lower pivot high can be confirmed), it may be time to short the market. Before the closing bell, I decided to buy a small position on $SPXU to test the water. I’ll either add or close out the position depending on how the market opens on Monday.
$AMRN closed the week with a solid green bar.
This is a very important green bar ’cause not only it stopped the downdraft momentum after three red bars, it also bounced off the Fib 38.2% retracement support. In other words, the probability of a continuing upward momentum is high under Newton’s 1st law of motion:
|I. Every object in a state of uniform motion tends to remain in that state of motion unless an external force is applied to it.|
I may even add more $AMRN to my already large position if price continues higher next week.
$CERS weekly bar is a doji bar!
I love doji bar at critical support level such as trend line. Doji at key support level has a high probability of forming a bottom. Of course, it needs to be confirmed first. If $CERS could close as a green weekly bar next week, we will have confirmation. Because of the doji bar, I added more $CERS today as a preemptive preparation.
$LRAD closed the week with an “ok” green bar.
Didn’t really like the long stick on top but I take a green bar any week. I’m not really worried about $LRAD at all. I’ve full faith this stock will shine in due time. Their technology is needed and the world just hasn’t caught up to it yet. Once it does, watch out.
Due to correction from $LRAD, my port gave back 0.70% for the day. YTD gain is now at 17.3%.
LRAD, AMRN, CERS, SPXU and 14.8% cash.
My 2 cents.
Categories: Daily trading Journal