06-24-2015 Journal- $LRAD, $AMRN, $BIOC, $CERS

Well, that wasn’t a pretty sight on the daily chart.  A down red bar signified a potential 2nd lower-high being formed.

SPY_Daily

The 5 MA was penetrated and price fell all the way to the 15 MA support which arrested the waterfall action.  I am no longer looking for a bounce off the 15 MA and is more concerned with the bearish momentum.  My fear for the follow-up waterfall action prompted me to liquidate all my biotech stocks in my port.

As of today, I had gains on $AMRN and $CERS which, fortunately, was enough to offset the losses I racked up on $BIOC.  Looking back, holding onto $BIOC was pretty stupid considered that the symmetrical triangle was broken to the downside.  The “correct” move was to liquidate after the breakout.  Of course, I could criticize myself hundred ways with the benefit of hindsight; but then a lesson needs to be learned here- sometimes, a breakout of a well-known pattern may be more important than how I feel about the fundamental.

I sold $AMRN when it couldn’t hold on to earlier gain and the SP500 was falling.  Furthermore, while reading the FDA court submission yesterday, I felt an uneasiness that the FDA “might’ be able to persuade the court with its argument.  After all, the message from the FDA is that it is “trying” to protect the public.  As much as its arguments might be full of holes per others opinion, I just didn’t feel a strong win for Amarin.  I see a 50/50 gamble in the card.  Thus, as much as I wanted to hold on to $AMRN, I sold it when price approached the support at $2.52.  A break below $2.52 would take out yesterday low which might confirm a yesterday bar as a potential top.

AMRN_daily

Price did bounce back to close at the support.  I’ll be watching it carefully tomorrow to see if it is worthy to jump back in. I’m going to refrain my jumping back in unless price takes out yesterday high.

It was easier to sell $CERS because price took out yesterday low much sooner.  Furthermore, the drop was right after yesterday bar failure to close above the resistance.  Thus, a potential correction is highly probable if yesterday low was taken out today.

CERS_daily

Seeing the chart above tells me that I made a good decision to lock in profit.

$BIOC was a painful one to sell because I had already accumulated a large losses from the recent persistent downtrend.  Selling here also meant that I could be selling at the bottom.  But the fact the price dropped below the 79 & 89 MA support coupled with a falling SP500 overrode my resistance to liquidate.

BIOC_daily

While price did bounce back some before closing, I’m not sure if I want to jump back in this one anytime soon.  Perhaps I’m corrected about the future prospect of liquid biopsy, it is my timing of loading too much too soon that threw me off.

I did not sell any $LRAD because today news “LRAD(R) Corporation Awarded ‘Best Acoustic Hailing Service’ and ‘Best Mass Notification System’ by Government Security News” confirmed what I already know- that LRAD has the BEST technology for the mass notification systems compared to competitors. Give it more time and I’ll be riding high on this one.

LRAD_daily

While price did not go higher, it did fight off the bearish attack.  Call me crazy, but I may add more to my already over-sized position on this stock tomorrow.

Due to corrections from $AMRN, $CERS, and $BIOC and my liquidation of them, my port gave back 1.6% for the day.  YTD gain is now at 8.2%.

Current holdings:

LRAD and > 50% cash.

My 2 cents.



Categories: Daily trading Journal

Tags: , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: