Ok, are you ready? What we have here is a possible bottoming pattern due to a “spinning top” candlestick bar at support on the daily $SPY chart below:
Notice the supports at $206.6x came from early Jan, mid April and early May of this year. As I’ve stated before, there is a strong possibility of a bounce when there is a doji or spinning top candlestick bar near the support. Giving that the SP500 is trading 7.15 points higher in the after-hour trading, I say the odd of an up day tomorrow is very high.
But today was a down-day; thus my port also took another hit.
First, I sold $AMRN after the market opened ’cause I wanted to raise cash as soon as possible before things got ugly. I also reduced positions on $ONCY and $BIOC. During the day, I bought some $NUGT hoping for a strong bounce but was stopped out at breakeven when price failed to sustain the gain once again. Later in the day when I saw price began to recover on $BIOC and $LRAD, I started to add back shares to this two positions.
$LRAD had a huge spread of $1.50 and $1.6x in the morning and someone hit the bids at $1.50. Price began to bounce and I was contemplating about adding back shares at $1.5x area; however, price began to climb higher in a stair-step fashion and I stopped my hesitation and started buying as well. When price settled back down to $1.7x area, I continued to accumulate more shares.
When you looked at the daily chart above, I believe today action was a “climax” sales with high volume that ended in a positive note. Price closed positive with a long-shadow on both ends. To me, it is as good as the doji and spinning top at support. I’m betting that $LRAD has hit the bottom and it is ready to bounce from here. Yes, I’m glad I added back shares today as well.
$AKAO was impressive today. Despite taking a hit in the morning, it bounced back quite earlier in the day which was very bullish.
Despite a down market day, price was able to close positive and above the 5 MA line.
$BIOC also bounced back after taking a hit; unfortunately, it was not able to bounce back to close positive. However, I was impressed with the come-back so I bought back some shares I sold in the morning.
Notice that price closed above the support at $2.46 which is important.
$ONCY did not look so good today. While price continued to stay inside the flag pattern, it was still heading down the flag channel.
It needs good news to wake it up for rally. However, I was glad to lighten up a little in the morning.
$ARTH continued to hold well without giving back gain.
Price is still above the 5 MA line. I can see price bounce from here in a positive general market condition.
Due to taking hits from $BIOC, $ONCY, and $AMRN, my port gave back another 1.2% for the day. YTD losses is now at 3.4%.
Main port: $LRAD, $AKAO, $BIOC, $ONCY and 20.9% cash. Trading port: ARTH (up 47.9%).
My 2 cents.
Categories: Daily trading Journal