Yeap, it was an ugly week. The bear dominated the whole week.
From the weekly chart above, a bearish engulfment candlestick pattern is formed for the week. If this week low is taking out next week, the odd of continued bearish momentum is strong; therefore, the bull needs to take back the steering wheel and head back to the upside to avoid confirming the bearish engulfment bar as a topping pattern.
With $LRAD trending down, the erosion of confidence triggered by the insiders selling from the CEO and CFO is somehow gaining momentum. The only way to stop this momentum is the positive earning surprise for Q3 that will be reported in early August. A positive earning surprise will remove the perception that insiders sold in June was due to writing on the walls.
It was an ugly week for $LRAD, price dropped 15.6% and is now finding support at $1.67 from the look of the monthly chart above. I believe price is way over-sold. A surprise large orders from U.S. Army, Navy, or Coast Guard will change the momentum to the upside in a heart-beat. I believe it was mentioned that Congress approved the military budget that included a line item for long-range acoustic device. If it is not happening this year, it may happen next year. Basically, $LRAD is testing the patience of the investors and the insiders selling in June was not helping.
$AMRN also dropped 10% for the week. Although I liquidated a large portion early in the week, I added back too early in the morning so I also took some hit as well on it. I decided to add back today ’cause I believe the selling due to Watson filing of appeal for the NCE was due to misunderstanding. I’m banking on the fact that when investors realized it was a smoke screen, price may bounce back up.
The next support on the weekly chart above is $2.09 which was last Sept high and is also next to the $2.06 of 50% Fib retracement level. I’m going to keep any eye to see if these levels will hold.
$ONCY dropped 9% for the week.
The next support is the weekly 5 MA line. Any positive trial results will be the next driving force to take this one back up.
$BIOC dropped only 1.5% for the week which was considered very good compared to others.
Price is still above the $2.51 support.
$AKAO was the only one that was up for the week by 1.3%.
An up week in a very negative market condition is very bullish indeed.
Meanwhile, $ARTH did a great job bouncing back up from sell-off in the early part of the week.
Price looks strong but a break out of $0.391 previous high to the upside will be even stronger.
With $LRAD taking in plenty of water along with drawdown from $ONCY and $$AMRN, my port gave back another 2.7% for the day. YTD losses is now at 2.2%.
Main port: $BIOC, $AKAO, $LRAD, $AMRN, $ONCY and 4.5% cash. Trading port: $ARTH (up 49%)
My 2 cents.
Categories: Daily trading Journal