Yesterday CCCL was the only stock on my watchlist. I noticed it up premarket on earnings report. I hesitated to get in and missed a 1.52 entry and still got in at 1.68 and was out 3 minutes later at 1.74. I was out wholy due to the fact I was up 120.00 in 3 minutes and after a stream of losses I panicked and sold while the chart was in an uptrend. A few minutes later the stock hit 1.85, then a slight pullback then a high of 1.94. The led me to finally follow Tim Grittani's advice and hide the Profit/Loss Day/Open so I can stick to the chart.
Speaking of sticking to the chart...
Yesterday's downtrend off it's high followed basic technical analysis beautifuly. Bouncing off support/resistance through the descending channel. It broke through at 13:22 and failed to hold support at 13:50. Annoying had to leave for work at 14:00 and didn't get my laptop opened til 14:30 and missed that solid uptrend and break in reistance that I had been waiting for. At 15:25 I got a fill of 1200 shares at 1.46 which was right at support and was also yesterdays open so I thought it'd be solid support. After holding support at 1.46 I was filled another 2800 shares at 1.46, confident it was going to hold support. A green candle at 15:41 breaking past another resistance level I thought I was getting an uptrend into the close. For 3 minutes I had an opportunity to get out at 1.50 and there was pressure on the left button of my mouse ready to sell it. As I was trying to convince myself to listen to Tim's voice in my head telling me to cut losses when a stock isn't breaking out as I'd like six minutes before the close it gapped down and broke through that 1.46. A quick bounce off the previous day's high of 1.37 and a bounce back to 1.44 led to to hold this position over night. Looking back I should of been out at 1.50 and not lost sleep last night due to breaking another rule and being in too large of size for my liking.
I am long also because of the conference call and news reports.
That chairman and CEO stated: "Looking ahead to 2015, we believe that the operating environment will improve modestly as compared to last year and that the macroeconomic fundamentals underlying our business are sustainable. In our view, urbanization is a long-term phenomenon in China that continues to be vital to economic growth and prosperity and the real estate and construction sectors continue to be very important growth sectors of the Chinese economy. While we are prepared for occasional sector cyclicality, we believe that our well-capitalized balance sheet, modernized facilities and reputation as a best-in-class ceramic tile producer enables us to weather occasionally disruptive business conditions and capitalize upon the opportunities presented by China's growth and development." I'd of liked a different word than "modestly", but still sounds positive.
The CFO had many positive things to say about 2015.
There is some sort of litigation that occured in 2014 which cost the company 9.6 million but in the conference call it was stated that all the losses were taken up personally by the Chairman/CEO, Mr. Huang, so it was not a loss to the company. For the CEO to put 9.6 million of his own money into a company shows strongth faith in the company.
Also, an article from TheStreet yesterday stated "Analyst estimates were not available for the company". I've watched DVD 4 of How To Make Millions at least 10 times now, concentrating on learning earnings inside and out. One thing that is mentioned that on smaller companies analyst are slower to release reports and that's what can cause earnings to spike on day 2/3/5/12. The fact that there were no anlyst estimates yet and there did seem much positive news in the conference call makes me believe an anylist could upgrade the stock and Tim says that he likes to be in day one before the analyst.
I'm getting much better at sticking to the/my rules. I'm concentrating on one specific strategy, buying earnings winners on breakouts, and ignoring all the other noise. Have spreadsheets going tracking breakouts at 0900, 1100, and 1400, and I'm learning earnings inside and out. Need to work on not being hesitant to pull the trigger on buying or selling.
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