Thursday thought on $AMRN, $DMRC, $AKAO, $BIOC

Imagine you were sinking into the water, suddenly you saw a hand reached down to you from above,  You felt yourself being pulled up.  The face above the water began to get less fuzzy as you came to the surface. In a flash, you recognized the face. It was the face of Yellen! <gasp> SPY_Daily So the market bounced back to recover some before closing.  See how the price bounced off the downtrend line?  With Yellen giving the market mouth-to-mouth resuscitation, the market is now highly motivated to rally just to get away from the kiss of Yellen!

$AMRN was down but still supported by the 89 MA. Tomorrow script number will determine where price will go next. AMRN_daily I’m betting for a 16,000 weekly script numbers.

Both $DMRC and $AKAO made a spectacular recovery after taking in water early in the day. DMRC_daily Not only did $DMRC recovered but with relatively high volume as well.  Something is going to happen soon and I believe the shorts are in big big trouble.  Oh yeah, the updated short-interest came out and the shorts volume had increased by 81K shares in the last 15 days with a total of 1,146,828 shares or 17.3% of the float @ Sept 15.  Even with increased short-interest in the last 30 days (a total of 348,217 shares or 43.6%), the shorts failed to push the stock lower. Giving the tiny float of $DMRC, if Walmart announces the adoption of the Digimarc barcode system, we will get to witness the mother-of-all short-squeeze event.

$AKAO recovered nicely and is ready to take the next leg up to make new high. AKAO_daily See how price bounced off the short-term uptrend line; price is gearing for another rally soon.

Without doubt, $BIOC is the hero of the day. Price took off and moved further away from the 79 & 89 MA which are now essentially the main support. BIOC_daily There is still one hurdle $BIOC needs to overcome and it is the $2.74 resistance formed on Aug 5th.  Giving the strength of its recent moves, $BIOC may simply walk over this resistance.

Both $ONCY and $ARTH continued to correct a bit but then they are both event driven stocks; thus current price actions don’t concern me much.

Current holdings:

Main port: DMRC, AMRN, AKAO, ONCY, BIOC   Trading port: ARTH

My 2 cents

Categories: Daily trading Journal

Tags: , , , ,

5 replies

  1. I always look forward to your thoughtful perspectives and insights on these stocks. Your notes are a welcome relief to the stress of trend trading.

    • Carbonpirate, you’re so right about the stress relating to trend trading. Riding the trend is actually a lot harder than most people thought. The volatility alone would test your conviction and perseverance; hence my updating my blog daily to remind myself why I’m in the trade.

      Thanks for the encouraging words!

  2. You are funny, man. I really liked the analogy with running away from Yellen’s kiss.

  3. hey Zen: would love to get your take on todays action. I am a uber bull of $dmrc It really got thwacked… similar to day after prior short interest release (sept 11) when it lost almost $3. Go back to August 1 and short interest is up just shy of 70 percent. go back to Jan 1 2014 and short interest is up 1000 percent (it was only about 100k at the time).

    Until spring, this stock routine traded 20k, 30k shares daily…. short interest went up 15k per day during a 1.5 month stretch. There is some major momentum on the short interest increase on this.

    Company has done a formidable job of pivoting from an ip license based company to creating a really innovative solution for retail industry… and beyond. as you said, its one PR away from creating a real challenging position for shorts, who seem to be escalating the ‘war’.

    Have a great weekend!

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