Thursday thought on $SPY & $AKAO

Wow!  The drop was steeper than I thought.  Although I bought some SP500 e-mini put options the day before, I took profit on the first bounce after the gap-down.  Little did I know there were more drop to come.  Oh well, I’m only entitled to the profit based on what I’m willing to risk.

SPY_Daily

Price penetrated the 12/31/2014 closing support but stopped by the low of late March which is now the support.@ 204.11. Looking at the hourly chart below, I did not see any doji or spinning top formation next to the $204.11 support; therefore, I knew better than to try to pick a falling knife.

SPY_Hourly

Currently as I’m typing, SP500 is down 8.75 points (it actually bounced off from down 15+ points earlier).  Nevertheless, I’m expecting at least a dead cat bounce tomorrow.

It is important that the support at $204.11 hold for the bull to have a chance to regroup and fight its way back up.

I was amazed that $AKAO was the one stock that showed a green closing in my port while the others were swimming in red.

AKAO_daily

See how price climbed back into the consolidation range with the 79 & 89 MA line maintaining a steady level line?  Unlike most stocks that reflected a declining trend.  For $AKAO to climb back into the comfort zone while others were falling off the cliff, I can see this stock being a high flyer later in the year or early next year.

Needless to day, despite $AKAO being green, my port was ugly today.  But this is all part of the volatility I’ve to put up with. The only thing that matter is not what is happening to the price today but how well the management of the companies I’ve invested in executes their business plan.  If they do well, it doesn’t matter where price is now.

Here is a famous Warren Buffet’s quote that is fitting for my game plan:

“With a wonderful business, you can figure out what will happen; you can’t figure out when it will happen. You don’t want to focus on when, you want to focus on what. If you’re right about what, you don’t have to worry about when”

Ok, that’s for the day.

Current holdings:

Main port: AMRN, DMRC, AKAO, ONCY, BIOC and 5.5% cash.  Trading port: ARTH

My 2 cents.



Categories: $AKAO, $SPY, Daily trading Journal

Tags: , ,

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