Today action was expected based on the formation of the shooting star candlestick topping formation pattern late last week. There is a reason why all these famous candlestick patterns got a name attached to them. The correct projections of price direction after these patterns happened so many times that names were created for the patterns to be memorized by disciplined traders. Armed with these popular candlestick patterns as well as the western patterns such as head & shoulders, cup and handle, etc, ones can trade the probability and make money continually as long as disciplined are applied.
Needless to say, the momentum is down and the after-hour already reflected further downdraft.
Again, this time my port followed the general market and corrected a bit as well with the exception of $BIOC which heroically closed a bit higher.
$BIOC continues to stay above the 79 & 89 MA which is bullish. But volume today was lower than average. There is good and bad to these low volume day. The good is that short-sellers were not spending more money to walk the price down even in a bad general market day. The bad is that the long could not get out without destroying the price. In a nutshell, low volume means that both longs and shorts are trapped and neither ones want to rock the boat. Btw, these are my personal interpretation of low volume so take it with a grain of salt.
Without pulling up charts, $AMRN, $AKAO, and $DMRC, while down, are still supported by the 79 & 89 MAs; so they are in good shape as far as I’m concerned. $ONCY did not do well and the waiting game continues on.
Port dropped back 1.4% for the day.
Main port: DMRC, AMRN, AKAO, ONCY, BIOC Trading port: ARTH
My 2 cents.
Categories: Daily trading Journal