Replay Week 6 2021

The thing that I see more than retargeted ads…

Crazy week last week with GME hitting $420 giving it a 600% gain at a point in time and retracing back to $325 when closing on Friday.

AMC was another hot stock that hit a 470% gain as well as retail investors goes to war against hedge funds that shorted these stocks.

Not that these stocks aren’t crazy enough but most retail investors and some other big figures spoke their opinions against Robinhood, the platform that has a business model that takes nothing from the investors and retailers but sell their order to High Frequency Traders and Hedge funds.

General Market — S&P Index & Nasdaq

S&P 500 falling to bottom of trend channel and EMA 50 as support
Nasdaq falling to bottom of trend channel as support

Both S&P and Nasdaq falls back to the bottom of the trend channel last week amidst the frenzy saga of Main Street vs. Wall Street. Most of the stocks retraced back to their static or dynamic support.

Portfolio

SEA LIMITED (NYSE: SE)

Trend Channel — SEA Limited

Last week I posted on questioning myself if I should see at the top of the channel before I buy back as the stock retraced.

I regretted not doing that as the retracement only took 3 days as compared to the 30 trading days that we have waited for it to reach that high.

This lesson was a wake up call for me to follow my rules amidst the large bull market as retracements could still come fast and furious when it comes.

Did not sell any position and waiting for it to go up to the next high before doing anything with our position.

Pinduoduo (Nasdaq: PDD)

Pinduoduo Bull Flag movements

These two weeks was like the previous support level, where it consolidated 41 days before breaking out.

As the other stocks was too delicious at their current support level. I sold one third of the position to fund the other plays building up position this retracement.

Nano Dimension (Nasdaq: NNDM)

Uh-oh, we are near that oasis but would it be real water?
Delicious point to add more position?

Nano Dimension retraced very quickly back to EMA 5 level before testing the next level of 18–21 strong weekly EMA 200 and static resistance.

I loaded up 2x position to buff up my position swinging up to 18–21 level and we can adjust out our position once it test that level before loading back at 18 as our support level.

Freedom Holdings (Nasdaq: FRHC)

We entered 2 weeks ago with the potential bullish flag pattern with just two candles being in the flag. However it seems to be taking longer than usual to consolidate before the movement upwards.

From my brokerage account, I can see many large and medium orders getting in everyday. So I’m holding it still.

Bilibili (Nasdaq: BILI)

Large Red Candle

I have initiated a new position on a new stock — Bilibili. A momentum stock that retraced to the weekly EMA 5 and daily EMA 20 which looks like value to me.

But this was a very small position as I have not enough margins to keep a relatively equal position that the rest.

Lessons I learnt this week

1. Follow the rules to enter and exit as we missed the opportunity to exit PDD and SEA amidst the fast downward moving week.

2. Price do go back to value zone, you just have to wait for it.

3. You need to patiently discuss with your LP why you have to exit. If they still insist, then just let it fall and use this as a lesson, data point to convince them why we have to exit when it hits high and wait for the good chance to buy back when the opportunity is back

4. Could have gained more and not sit this retracement actually but worth it if it’s a good datapoint to remind LPs why I have to do it

Disclaimer

This post is not a recommendation for buy and sell and should only be taken as an entertainment purpose. Do your own due dilligence. You may lose more than your principal amount depending on what type of investment vehicle you choose to use.

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learning how to be a good CEO @Bacoustix. alum @creditsuisse, bad trader trying to improve his edge.

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Dominic Heng

Dominic Heng

learning how to be a good CEO @Bacoustix. alum @creditsuisse, bad trader trying to improve his edge.

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