Sold ARA

Sold 15 lots @ $1.17.

An uncertain decision:

• Main reason to sell was that it was not rising, even in a bull market. And I'm impatient.
  
• But falling MACD with steady price can mean that it is just working off its overbought condition...
  
• ... but stock is still in an uptrend...
• in a bull market.
  
• Uncertain price action, yesterday: accumulation, today: distribution.

This decision is either going to look very smart or very dumb with hindsight, but when pulling the trigger, everything is uncertain.

Bought ARA

Bought 6 lots @ $1.15, 9 lots @ 1.16.

Cut loss probably at $1.08.

ARA Asset Mgt: Pennant?

Matches textbook description of pennant:

• Strong uptrend before start of formation.
  
• high vol on flagpole
• So far, replacement vol has been low

To trade, would need to see:

• Continuing low vol on retracement.
• Retracement does not last longer that 3 weeks (some books say one month). Currently on day 6.
  
• High vol breakout.

Cut loss would be just below the valley.

Take note:

• 1 for 5 bonus issue proposed approx Apr, need a multiple of 5 lots if buying.

[Update 13th Mar 10]

No pennant. It did not break out with a big strong white candle... rather we got a couple of pussy candles. A breakout finally occurred yesterday:

The uptrend is still intact. If I buy now, cut loss would be at $1.08, 7% below last closing price of $1.16.