It was a great day considered the carnage the market had gone thru the last four trading days. Although a 619+ points on the upside was impressive, it still has a long way to go to get back above last year close.
Today only recovered most of Monday drop. It still needs to make up ground from last week waterfall. From the weekly perspective (weekly chart below), the solid green bar bouncing off the October support of last year favors a bullish momentum.
Let’s see if this momentum can continue the rest of the week. I’m still staying away from trading the SP500 ’cause price could move 10 points in a few minutes whereas it would take hours to do so before last Thursday.
$AMRN had formed a doji bar from the weekly chart perspective. Price bounced off the 79 MA support which is leveling off into a even line. Apparently, there are bear attack in action ’cause the Yahoo message board was full of twisted interpretation of the Japanese Jelis study in the hope of scaring weak hands into selling their shares. These short-sellers will have to cover eventually if they can’t find enough weak hands to let go of their shares. I’m holding my shares for the big bounce.
Not only the weekly doji bar falls within the consolidation range of the last four months, it looks good for a potential bounce from here.
$DMRC formed a daily doji bar right at the 79 & 89 support. As I’ve said before, a doji at the support gives a high probability of a bounce. I’m also seeing some short-sellers trying to push this down as well. Again, I think they are overlooking the shadow cast by Walmart’s instagram update. When I read that someone is shorting, I count that as additional buying force to push the price back up.
Giving today doji bar, the probability is high that a bounce will happen tomorrow.
$AKAO wasted no time rallying back up after the steep dive on Monday. Imagine those who sold on Monday and is now watching the stock flew back up without them.
I think this one will climb back over $7 pretty soon if not tomorrow.
$ONCY spiked up on news but was sold back down by sellers.
I’m a strong believer in this one so I’m holding until the market wakes up to this gem.
$BIOC is being walked down by sellers again ’cause I believed they are getting desperate now. They really need weak hands to cover and they ain’t getting enough. I truly believe time is running out for them and they know it. If more positive news come out, they are going to be in big trouble.
The chart doesn’t look good and that is what the short-sellers are counting on. I’ll wait for the day when they are forced to cover.
$ARTH was behaving as if there were nothing going on in the general market. Price was just consolidating around current range waiting for the human trial. I’m very impressed.
I can see the next leg up will exceed the previous high of $0.391 soon.
With three up and only two down, my port gained back some money today.
Main port: AMRN, DMRC, AKAO, ONCY, BIOC and 5.7% cash. Trading port: ARTH
My 2 cents.
Categories: Daily trading Journal