As you may know, we have a position on ASIA since early March. The stock had a pretty nice rally today, it jumped more than 7% with relatively high volume.

It is going to test resistance at $32, which is last’s highest price back in December last year. Should the stock broke this resistance, we are planning to add positions to ASIA. If it is not breakout, we may close some of our position and take a profit.

First of all, this is a speculative trade. Today, we open a long position on CAGC at the price of $24.34. The reason is because CAGC has been holding 500-day moving average (50-DMA) as its strong support. The stock moved to below 50-DMA in early February; but then it rebounded nicely.

The MACD indicator is still moving down; so there is a possibility that the stock might break 50-DMA and go to the next support at $19.97 or even $16.09. That’s why; we’ll be monitoring this trade very closely.

PS: For those who are new to our trading journal; we’ve been doing stocks trading based purely on technical analysis. The goal is, of course, to beat the index by timing the market. You can follow our trading journal closely from our Covestor as well.

This morning, we opened a new long position on HMIN (Hotel Inns & Hotels Management Inc.) We’ve been watching this stock for quite a while; and just pulled our trigger this morning. Based on technical analysis, the stock seems to break short-term downtrend last week. It rebounds nicely from 61.8% retracement based on its closing price. If we look at the intraday price, it successfully rebounds from strong support in mid-October.

Today, we took some profits from our long position on ASIA at $27.55. We still maintain half of our position on ASIA.

We also open a new long position on PEGA at $38.64. The chart shows there is a possibility of breakout on the triangle pattern. The volume is high that might be a sign that this is a real breakout. Fundamentally, PEGA went up today because they acquired Chordiant Software.

Finally, we are able to setup our Covestor account. Our URL at Covestor is:

http://www.covestor.com/mbr/1stmilliondollar

For those who don’t know, Covestor is a portfolio sharing service where tens of thousands of self directed investors share their real trades. You can also follow them live for free. If you find a successful investor, you can even replicate their trade activities on your account.

As you can see in the picture above, our return month-to-date is 13%. Our return since inception is 15.46%. The inception is actually February 2010 when we opened our account and imported our transactions from our broker. Unfortunately, there was a technical difficulty with our account; so it wasn’t ready until last week.

If you follow our Twitter account (also available on the side bar of this blog); you might notice that this morning, we posted:

Long $ASIA at $27.37… broke the triangle pattern.

We just made a long trade on ASIA last Thursday at the price of $23.73. Yes, it is actually $23.73 (not $27.73). It was a typo. Today, we added-up our long position on ASIA at the price of $26.65. You can find our reasoning for this trade in the chart above.

If you’ve been reading our blog; you might be wondering, what’s all about? If you look at our overall portfolio, we allocate about 20% of our money for speculation. It includes our stock picks (which we hold for a long time). It also includes this kind of trading where we do swing trading.

We are using a combination of fundamental and technical analysis to execute our trading.

• We use fundamental analysis to search for “the best stocks” out there. What kind of filters do we use? Nothing special, just the standard ones, like EPS (Earning per Share) and PEG (Price/Earning Growth).
• After we identified stocks to trade, we use technical analysis to find an entry point and exit point. Here, we also use standard indicators, such as moving averages, MACD and stochastic.

We have actually setup a Covestor account; so that everybody can verify our trades. Unfortunately, our account is not up and running yet. Firstly, our broker is not supported by Covestor yet. Then, we uploaded our transactions statement manually. It has been 10 days; but nothing is showing-up in our Covestor account. We contacted them already; and they said they’re looking into it.