06-15-2015 Journal- $LRAD, $BIOC, $CERS, $AMRN

Have you ever experienced the sudden drop in altitude while in a commercial airline?  “What was THAT!?!”  I believe that summed up my experience this morning watching the market opened.

SPY_Daily

Right off the gate, price took out the 79 & 89 supports.  Although price bounced back up some; but that was only because Greece has not yet officially default on their loan which leave some “hope” for an eventual agreement with the creditors.  However, once the reality sinks in and default becomes reality, the market may tank big.

Because I place a higher value on overall market condition over fundamental story of individual stock, I made a tough decision to reduce my position size on my three biotech stocks: $AMRN, $BIOC, and $CERS to raise cash and reduce risk.

Actually, $AMRN did not do so bad today. I may have gotten out prematurely but that’s the chance I’m willing to take giving the Greece storm is on the horizon. By the time I’m done peeling off layers, I reduced my position size by 80%.

AMRN_daily

While today red bar isn’t a big one, I’m more concerned about the rest of the week. Price may as well consolidate b/w $2.30 and $2.50 so I’ll be watching this one closely looking for fine weather to add more.

As much as I like $CERS fundamental, I like preserving my capital even more.

CERS_daily

Same story as $AMRN, today price action is not the reason I’m selling, it is the storm I can see from here that I’m worried about.  After the dust settled, I reduced position size by 67%.

$BIOC was also down slightly like the others two biotech.

BIOC_daily

Notice that the 79 & 89 MA lines are converging together.  I may buy back some if price can bounce from the converging lines. Unlike $AMRN and $CERS, $BIOC had been on a downtrend so the odd of bouncing may be better than the other two in light of a coming storm.  I reduced position on this one by 65%.

$LRAD was down so much already that I did not see the need to reduce my position size.  The fact that this is a low volume stock makes it impractical for me to trade in-and-out.  I know I’ll be locked in my position on this one from the beginning. It is like investing in real estate- you buy and wait for the city to expand into your properties.  I’m waiting for the technology to become relevant soon.

LRAD_daily

Good to see price bounced back to close above the uptrend line.

Due to lower closing of the three biotech stocks and from my selling at lower price points, my port gave back 0.90% for the day.  YTD gain is now at 10.8%.

Current holdings:

LRAD, BIOC, CERS, AMRN and 44% cash.

My 2 cents.



Categories: Daily trading Journal

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