Weekly thought on $AEMD, $CGC, $IBIO, $KNDI, $LRAD, $TRXC

Before you read on, please be aware that the analysis below is my opinion only and may include flawed assumptions and inaccuracy of logic; therefore, caveat emptor applies here.  Furthermore, all emphasis (color-coded, boldness, and underlined) on the excerpts are my own.

Believe it or not, the SP500 closed with a slightly green doji bar this week as opposed to another ugly red candlestick bar. That was definitely a good sign! SP-500_weeklyI’ve revised the chart to reflect additional supports such as the lower Bollinger band (1st support). The 2nd support is now the 79 & 89 moving averages, and the 3rd support being the lower parallel line that contained the uptrend.

Notice I’ve redrawn the parallel lines (green) that fitted the containment of the bull trend since 2009. My previous parallel lines were based on Andrew’s Pitchfork lines that I discovered would change position when I expanded or reduced the time frames; therefore, I replaced it with two parallel lines that fitted most the of uptrend.

Below is the monthly SP-500 chart that shows how I contained the uptrend with the two green parallel lines. SP-500_MonthlyThe monthly SP500 chart above with the new parallel lines showed a much better presentation of the market action. Using this new parallel lines, it is clearer now that market price action went above the upper parallel line and is simply self-correcting back to inside the containment area. It was the same reaction in February of this year.  In essence, I believe (aka my 2 cents) that this self-correcting mechanism of trading back down inside the containment area (inside the two green parallel lines) is a temporary set back for the bull so it doesn’t get too far ahead of itself unless the supports below are broken in the future. The 1st support in the monthly chart is now the 15 moving average line (brown), and the 2nd support is the lower parallel line that contained the uptrend.  This new interpretation of the parallel lines changed my whole perspective of the uptrend, and I’m no longer as fearful as before.

Please be aware that chart reading is a personal interpretation of the price actions, and can be subjected to the biased input of the chartist. So, take my chart interpretation with a grain of salt.  I’m interpreting the chart as my personal “crutch” to support my venturing back into the market.

In a nutshell, the market reaction this week, especially with a strong bounce on Tuesday gave me back some confidence to venture back into the market cautiously. As a result, I bought back some $KNDI, $TRXC, and $CGC to take advantage of the dips.

$AEMD – Aethlon Medical, Inc. made a presentation on October 18, 2018, and I noticed there was more emphasis on the cancer therapy. Below is a cut & paste from the presentation:AEMD_cancerSource: Bio Investor Conference

Like I said before, this one is a keeper. One of these days when the exosomes therapy proves to enhance treatment efficacy with the existing cancer drugs, this little gem will fly.  Of course, when $AEMD flies, so will $IBIO.  For those who are unfamiliar why $IBIO will go up because $AEMD is going up, $IBIO is the company that produces the ingredients inside the $AEMD’s hemopurifier.

$CGC – When the price dropped below $50, I just had to buy back some.  Nothing aggressive but still a decent position. Since this is the grand-daddy of all pot stocks with about $4 billion in the bank thanks to Constellation ($STZ) investment, I feel much safer with this one than all other pot stocks.  There is also a Seeking Alpha article that I found to be very informative and worth a read if you’ve not already done so. Click here to read: “The Cisco Of Pot Makes Another Key Purchase.”

$IBIO – I’m waiting for the filing of IND for its lead therapeutic candidate IBIO-CFB03 for the treatment of systemic scleroderma, idiopathic pulmonary fibrosis, and other fibrotic diseases.  According to their FWP report, we should hear about it any time now before the year is up.  We could also hear more news on new contracts and/or collaborations.

$KNDI – This is all about the new Kandi EX3 EV.  I’m simply betting that the EX3 is going to sell so well that it will transform Kandi into a full fledged EV company.  Once the EX3 takes off, the company will then have the momentum to create more EVs with an appealing style for the working class population everywhere.  It’s cheap and appealing at the same time.  What more can I ask for?  Of course, there are plenty of rear-mirror doubters out there who are obsessed with Kandi’s past and don’t want to believe in the company.  Well, I’m not betting on Kandi’s past, I’m betting on the EX3 and Kandi happens to be the company producing it.

$LRAD – This little gem is a keeper. I’ve a ship load of shares and have no plan to sell any because I believe its technology is perfect for the current climate exacerbated by global warming. No, I do not want to argue with anyone about the existence of global warming.  If you don’t believe in it, fine by me.  Meanwhile, I felt the heat wave this summer was much hotter than prior years.  And I’ve a feeling that the coming winter is going to be much colder as well.

$TRXC – I’ve always like this company.  I know I will come back to it sooner or later.  TransEnterix recently received FDA 510(k) Clearance for 3mm diameter instruments.  This clearance effectively established Senhance as a bona fide robotic assisted surgical device (RASD) for the laparoscopic community. Since the 3mm diameter instruments are already being used by the laparosocpic surgeons, the Senhance RASD, unlike the Da Vinci, allows the laparoscopic surgeons to continue to do what they’re doing without losing a step.  In other words, per my 2 cents, when the laparoscopy community decides to adopt RASD for their trade, Senhance IS IT!  Nope, not the Da Vinci, it’s the Senhance.

Btw, TransEnterix CEO, Todd Pope was named one of TIME Magazine’s 50 Most Influential People in Health Care 2018.  This is the guy who has gone from Surgibot (which failed to get FDA clearance) to getting FDA clearance for Senhance without missing a beat.  In essence, CEO Pope has the tenacity and drive to take Senhance to the laparoscopic community.  I think by being named one of 50 most influential people in health care 2018, he may be able to open more doors to the laparoscopic community to get his foot in to shine the light on Senhance and its capabilities.  After all, most of the successful companies are the result of their CEOs.  Microsoft got Bill Gates. Apple Computer got Steve Jobs. Tesla has Elon Musk. Netflix has Wilmot Reed Hastings Jr.. And TransEnterix has Todd M. Pope.  It’s ALL GOOD!

Thanks to upwsing on $LRAD, my port was able to stay close to even for the week despite drawdowns from KNDI, CGC, and $TRXC after my purchases.

Current positions (in alphabet order):

AEMD  CGC  IBIO  KNDI  LRAD  TRXC & cash (up 21.5% YTD)

My 2 cents

From my camera:

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Categories: Daily trading Journal, trading journal

Tags: , , , , , ,

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