Wednesday thought on $SPY, $BIOC

It was a disappointment that the bull could not overcome the resistance from the 79 & 89 MA.

SPY_Daily

From the look of it, the bear has the upper hand and I expect price to break out of the symmetrical triangle to the downside soon.

The hero of the day continued to be $BIOC.  The street finally paid attention and H.C. Wainwright initiated coverage with a buy.  I believe this is just the beginning.  As $BIOC continues to gain traction in the medical world, the revenues will grow accordingly.

BIOC_daily

This time around the gap up day ended with green color bar.  Did you notice that all the gap-up bars from the past were all in red?  Today green bar means that buyers are more willing to hold for the bigger picture.  How can they not be when H.C. Wainwright is shooting for a $4 target?  The way I see this, the $4 target is based on current development so far.  Once the liquid biopsy begins to gain traction in the medical community, you can expect to see new coverage with much higher price target.  This is not going to be a straight line up movement, expect to see zig-zagging upward momentum ’cause the shorts and the short-term traders are going to keep doing what they are doing.  Best not to worry about the day-to-day gyration.

Now that I’ve locked into my positions in my port and is planning to ride out the volatility, perhaps I won’t need to do a daily update on my positions.  To do so will defeat my intention of not looking at the price action every day.  How well my port does will depend on whether the companies in my port have succeeded in their execution of their business models.  It’s going to be a long road ahead.

I guess it will make sense that I do a weekly update of my positions in the port and occasionally do an emphasis on a company like I did with $BIOC yesterday.

What I’ll continue to do daily is to cover the price movement of the SP500 ($SPY) and my forecast of where it will go next.  I may even list my short-term trading position using the SP500 e-mini option (call or put).  I like to use the options to trade because it will protect me from sudden violent movement which can cause serious damage if you use straight SP500 e-mini future contract.

To start, I bought put option near the close due to the $SPY hourly chart below:

SPY_Hourly

Notice that reverse dragonfly doji with a long shadow above the body.  That is a very bearish signal to me and the probability of a continued downward pressure is high.

Ok, that’s it for the day.

Current holdings:

Main port: AMRN, DMRC, AKAO, ONCY, BIOC and 5.3% cash.  Trading port: ARTH

My 2 cents.



Categories: $BIOC, Daily trading Journal

Tags: , ,

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