With China stock market dropped about 6.5% the day before, I was expecting the U.S. market to join the selling bandwagon. “Why would China drop has anything to do with me?” I could almost hear the voice of Mr. U.S. Market asking the question just from looking at the chart below:
While down it wasn’t much of a down either. The DOW even managed to close near the lower Pitchfork uptrend line. It’s just another ho hum day for Mr. U.S. Market.
Today is an excellent day for my port with three stocks jumping over the horizon, one fell off the horse while jumping, two did not jump but walked briskly, and one fell into a muddy pond. Let me started with the one that fell off the horse.
$BIOS gapped higher and I was going goo goo ga ga all over it. “Add more!, Add more!” I was hurrying myself and clicked the buy button on my keyboard furiously. To tell you the truth, I added too fast. Of course, with the benefit of hindsight, it seemed I added too fast. However, if price was to shoot up to over $4 quickly after I bought, it would be the right thing to do by adding fast. So, by buying faster, I’m also betting on the probability of a continuing climb after my adds. In summary, I made two bets this morning regarding $BIOC: 1. I added more to size up my risk betting price will continue higher in the mid-to-long term time frame. 2. I added quickly instead of spreading out the buys over the day betting that price strong momentum will continue onward. Obviously I lost bet #2 today. Nevertheless, over the long-run, I made good money buying/adding fast. So, I’ll continue to do so if I believe in the momentum of the stock is still strong.
When you look at the above daily chart, you can see the giant symmetrical triangle formation. Price apparently banged its head against the resistance downtrend line this morning. But the picture is not complete yet. We are still waiting for a symmetrical triangle breakout to happen. And I’m betting the breakout is on the upside. Therefore, while underwater a bit today, I’m not worried about my position. Again, if liquid biopsy becomes an accepted standard in testing for cancer cell in the near future, this company will be in the forefront getting all the $$. Moreover, the chance of its being a target for buy-out is also very high. So, bring it on, I’m holding. Btw, there may still be buying interest coming in as a result of the ASCO meeting kicking off tomorrow.
Next, $UEC, $CERS, and $AMRN were the horses jumping over the horizon. Am I glad I chose to buy $AMRN instead of adding to $CERS. Although $CERS went up today; it couldn’t beat the % increase in $AMRN.
$UEC made a very nice jump for the day. While price is facing an old resistance above, the volume for the day tells me this bull move has only just begun. Because I like the fundamental story behind it so much, I added more today.
$CERS green bar was solid with higher volume. At first, when it dipped in the morning, I sold some shares to reduce risk since I’m adding more risk to $BIOC. And when price started to bounce back strong, the pending risk lessen and I immediately bought back what I sold. Thanks goodness I did.
$AMRN was a total surprise! I didn’t expect a decision regarding NCE to come out from the court this soon. From what I gathered from reading the legal ruling, there were so many holes in the FDA argument that the judge had no choice but to rule in favor of $AMRN. With the rulings. my understanding is that the FDA has to grant $AMRN the 5-years exclusivity on the NCE.
See how magical are the 79 & 89 MA lines? Oh, btw, I’ll never get tired of calling them magical. I think today price action kicked off the slow climb back to previous glory. I may add more tomorrow when cash is free up.
$LRAD also bounced some today which helped stopped the bear momentum.
Today action from $AMRN reminded me that anything can happen to a stock with news. Imagine one day $LRAD shoot up due to news of winning the Middle East business. That would be a day to watch.
$LEU was not moving much while $AKAO was the one who fell into the mud pond.
Apparently the rocket launch I was expecting didn’t happen; instead, the rocket fell back down to earth. With two red bars and a bounce I can expect to hold; but three red bars in a row and other stocks are climbing, I knew I had to sell $AKAO to transfer risk around. Basically for this trade, I gave back all gain from the launching day.
Thanks to the actions mentioned above, my port gained back 2.8% for the day. YTD gain is now at 15.4%.
LRAD, BIOC, UEC, CERS, AMRN, LEU and 11% cash.
My 2 cents.
Categories: Daily trading Journal