As if right on cue, market bounced back up from the pull of the 79 & 89 MA support. From my observation to-date, even if price is below the 79 & 89 MA support, it still holds better than 50/50 possibility of a bounce as long as price stays close to the support and not drift too far below it. Yesterday, I was too wrapped up with the Greek tragic drama that I neglected to see this possibility of a bounce.
That was a nice bounce. If tomorrow Fed meeting ends with a positive note, we may have a continuing uptrend momentum.
Seeing blue sky ahead instead of a storm, I did not hesitate to buy back $AMRN, $BIOC, and $CERS. Although I paid a bit higher price to get back in, I considered the premium as cost of business. At the same time, I also restructured my position size on the three biotech stocks- I increased the size of both $AMRN and $BIOC and reduced the size on $CERS.
Although price did not move much for the day, it still closed above the 5 MA support which is bullish.
I really like the converging of the 79 & 89 MA support lines. Coupled with the bounce and a green bar, the possibility of a further bounce from here looks good. Thus, I’ve no problem increasing the position size than before.
I like the positive green bar after yesterday doji bar. Notice the 5 MA is now pointing back up. I reduced the overall position size of $CERS even after the add-back ’cause I feel that $AMRN and $BIOC have a better chance of price acceleration.
$LRAD finally had a follow-up bounce from yesterday recovering bar. At least, price is moving away from the uptrend line to the upside. So far so good.
Thanks to positive closes on all four stocks, albeit small % change, my port gained back 0.40% for the day. YTD gain is now at 11.2%.
LRAD, AMRN, BIOC, CERS and 4% cash.
My 2 cents.
Categories: Daily trading Journal