It was an ugly drop after yesterday up day; but the bull did fight its way back up in the last hour. Unfortunately, China allows its yuan to fall for second day and the after-hour SP500 is now down 14 points.
Notice that after today half-way recovery, price is now at the middle b/w the top and bottom of the symmetrical triangle. If tomorrow down day can bounce off the lower uptrend line and China stops the falling yuan, we may see a possible recovery. However, if the uptrend line is broken to the downside, we may see more ugly days ahead.
Today is another ugly day for my port. All my positions were down with $BIOC leading the charge..
$BIOC took a dump when a large 200K shares was sold in one minute time. I believe there was a whole lot of stop orders at $2 and below. It was quite fast and furious for the drop.
Needless to say, price broke thru the support to the downside. I’m still holding and will probably continue to hold simply because I believe liquid biopsy is the future. Today carnage is just a temporary short-term reaction to a fallen market. Once the doctors begin to see the value of liquid biopsy in a year or two, $BIOC will be flying high. Remember how Netflix got dumped from $300 to low $70 (before split) in the second half of 2011 when the CEO wanted to charge more for monthly subscription with a nasty letter to the customers? Well, when the fundamental began to prove its business model, price climbed and climbed. I believe this same story will happen for Biocept.
$AMRN also dropped but price is still above all the MA support lines.
I’m expecting a bounce from the 79 & 89 MA support. Also, the CEO of Amarin bought 20,000 shares of $AMRN at the open market today for the price of $2.35. That is a strong vote of confidence. After two very positive outcomes of winning back NCE status and receiving injunction against the FDA for filing criminal charge for initiating discussion with doctors for off-label promotion with truthful and non-misleading information, I’m feeling very positive about my investment despite current volatility. I’m going sit tight with my position and ride this one going forward.
$AKAO also gave back some but still stay at the support level.
I like the fundamental story of $AKAO and will also sit tight on this one.
$ONCY formed a spinning top bar at the support line. I’m expecting a bounce tomorrow.
Statistically speaking, it should bounce; but I won’t be upset if it doesn’t due to the overall falling market. I also believe in $ONCY’s method of fighting cancer. It’s another one to hold and wait.
$DMRC also fell to the support line after holding in the positive territory for most of the day.
Seeing a possible breakdown, I lightened my position by 20%. I’m going to watch this one closely tomorrow and see if it can bounce back up from support.
$ARTH continued to correct due to delay of the human trial to the 4th quarter. I think it is way over-sold. I’m holding my shares for the eventual result of the human trial. So, it really doesn’t matter if price is 25 cents or $1.00; I’ll still be holding. Thus, the volatility of the price action before human trial result doesn’t bother me. In fact, I prefer the human trial result comes out after my holding periods of the stock exceeds 12 months so I can take advantage of the long-term capital gain tax rate. With the potential 10+ bagger returns of the money, the long-term tax rate can reduce a LOT of tax compared to short-term tax rate. We are not dealing with double or triple here, we are dealing potential 1,000+% and higher return.
Notice that price bounced off the 79 & 89 MA support and closed above them. It may bounce some more tomorrow.
With $BIOC dropping 15.6% for the day along with other drawdowns, my port gave back another 2.8%. YTD losses is now at 13.7%. For some reason, this negative turn of event doesn’t faze me. I’m feeling good about my collection of high-beta stocks. I know some of these stocks will turn on a dime when the right catalyst appears. And I’m confident that these catalysts may happen to some of my positions before year-end. I’m just going to sit and wait.
Main port: AMRN, DMRC, AKAO, ONCY, BIOC and 11.4% cash. Trading port: ARTH (up 9.5%)
My 2 cents.
Categories: Daily trading Journal