With Greece tilting on defaulting on their loan due tomorrow, the market took a big hair-cut today in preparation for any unforeseen negative impact on the financial market. Although the bull did put up a fight in the morning by bouncing some after a gap-down open, it could not fight off the avalanche of selling that took it further down the hill. To end the day, the market closed slightly below 2014 year-end close. The market is back to square one for 2015. Will it be an up year or down?
From the chart above, there is a strong possibility that the 2014 year-end close provides a strong support for a bounce from here. However, are there any “hidden” time-bomb that may catch everyone off-guard that could drive the market even further down. Will Greece become the last straw that breaks the camel back? All we can do is to watch the event unfold.
With the market down big, I didn’t see any point in holding my high-beta biotech stocks so I sold them for small losses.
I also don’t see any point in putting up stock charts ’cause the big storm will dictate the future direction of most stocks anyway; unless the fundamental news is so great that the stock has to go up despite a big down market day. If $LRAD lands the Middle East cities’ deal, I don’t think a down market will keep it down ’cause the revenue amount is simply too big to ignore.
So, I will end today journal by being thankful that I was close to 50% cash coming into today open.
Due to correction on $LRAD and small losses from $CERS and $BIOC, my port gave back 1.8% for the day. YTD gain is now at 7.7%.
LRAD and > 50% cash.
My 2 cents.
Categories: Daily trading Journal