Ok, I’m going to state the obvious on the chart below. Isn’t that looking like a topping formation with today red bar completing the initial down leg? If Newton’s 1st law has any effect, next week may continue a downward pressure on the market with a possible support at the lower Pitchfork uptrend line.
Not to mention that the 79 & 89 MA supports are directly below the uptrend line. These supports are important if the bull wants to continue an upward bias for the rest of the year. With only one week to go, look like this year “sell in May and go away” isn’t gonna happen unless the market drops over 400+ points by the end of next week- a feat that is known to happen from time to time. Only that the probability of that happening is as good as the squirrel successfully completing the suicidal run across a suburban street road with light traffic. I don’t remember if I’ve seen more live squirrels running across the street successfully or more dead squirrels by the side of the road. With Greece stirring the pot, anything can happen next week.
I’m sure you can tell by now that I’m a bit bias on the downside from here. In fact, my bias increased to the point that I decided to buy $TZA to hold over the weekend.
I’m seeing a potential bounce from a Fib 78.6% retracement level.
Seeing $AKAO opened stronger, I bought more to size up my position. Little did I know, my “feeling” of a possible upside breakout move I mentioned yesterday journal turned out to be right-on-the-spot. You guess it, I’m as right as a lucky draw on the short stick; otherwise, I would have stocked up yesterday instead of buying more today with higher prices.
Doesn’t the daily chart above look like a rocket launch? I see today take-off as a beginning stage of a long flight upward. I’ve good feeling about this new position. I think I’m going to hold.
All my precious metal holdings are hanging onto their supports by a thin tree branches. They were literally dangling by the supports.
If situation doesn’t improve, I may have to lighten up to reduce exposure.
$LEU green bar stopped the downward pressure this week.
From the weekly chart above, despite a down bar, overall trend is still leaning on the upside since price is still on top of the 15 MA line.
$LRAD closed the day and the week with a green bar on both. Nicely done!
I like the fact that price closed above the daily 79 & 89 MA lines. As I remember from the recent earnings update, the $LRAD executives are going to fly to the Middle East next week to demonstrate their technology to the potential buyers. A win on this bids will kick-off $LRAD in a big way. It will be a turning point for other city planners to take a hard look into $LRAD’s mass notification systems.
Seeing that biotech isn’t dead yet with a run from $AKAO, I decided to buy back a small position of $CERS when price dropped down to 4.5x for long-term hold. If price continues to drop, I’ll continue to add more to build back my position.
Thanks to gains from $LRAD and $AKAO, my port was able to gain 1.3% for the day despite drawdown from precious metals holdings. YTD gain is now at 15.3%.
LRAD, SLW, AKAO, ABX, LEU, TZA, NUGT, CERS and 24% cash.
My 2 cents.
Categories: Daily trading Journal