Bigger Picture

Several updates from this morning”s price action:

ATTBF — Retesting .135 support after a shallower bounce than the previous reaction up, which is forming a descending triangle. “Third time”s no so charming.” Closing above .175 would still save the pattern from another downleg.

FITX — Having formed a narrow channel, the lower end is being tested while volume begins expanding. There is potential for a new downleg to fresh lows under .01.

ERBB — The triple bottom”s last bounce has now been retraced as deeply as possible to .0125 without yet signaling a break lower underway.

GWPH — Volume expanding into this morning”s fresh low attacking 66. Bouncing to close back above 72.10 would suggest that a pullback had ended. The downleg that was triggered under 79.55 otherwise remains intact.

INSY — Volume consistently firming as price creeps back up to 42 resistance, where inflecting through it sharply on expanding volume would launch the next upleg.

Crude Oil is bouncing from last night”s $2+ drop, but being +$1 has retraced to break-even. That could begin forming a bottom, but a durable rally is unlikely this soon. Meanwhile, Energy sector issues are firming…

Monday morning”s Livestock reviewed in detail the January Effect candidates. There”s not a lot to expect from stocks when the broader market”s leadership is rolling over to join the laggards that are our candidates. Upside is all the more difficult when that roll over is so substantial and steep.

Add to that the ongoing Crude Oil slide that has dragged down the Energy sector. Calling into question dividends and operational break-evens can”t help but attract more tax loss selling pressures.

I also reviewed several Marijuana sector stocks that were behaving in noteworthy ways. And then I reviewed the stocks that were requested by subscribers.

Enjoy!

This morning”s Livestock starts at 10:45am ET, and ends at 11:30. We”ll review the January Effect candidates in-depth. A couple of Marijuana sector stocks have relevant price action to discuss, too. And I want to be sure we have plenty of time to handle every subscriber”s instant analysis chart requests.

Login info: (using iPad or Tablet? Tell me in the Activity Feed comments and I”ll post audio information.)
https://roddavid10.mitel-nhwc.com/join/pcxsrhm

AERO, ARNA, ATTBF, BTU, CALL, CARA CBIS, CDE, CLF, GBLX, GSK, NCT, OCN, PBR, RIG, SODA, WLT

Dec 8 January Effect update linked here.
Dec 1 January Effect update linked here.
Nov 17 January Effect candidates introduction linked here.
Oct 9 January Effect webinar linked here.

Join me in Monday morning”s Livestock to review each of the following issues in detail.

The premise with Energy sector stocks is that they had fully reflected their underlying commodity”s weakness — and then the underlying commodity accelerated its decline, taking the sector along for the ride. The extra drop isn”t so much unpredictable, as it is vulnerable, so long as resistance isn”t recovered. And resistance was never recovered.

Now the sector”s components have in most cases trended down to fresh lows. The underlying Crude Oil commodity has reached levels once again vulnerable to at least a steep corrective bounce, the first reversal from a new low cannot also be a durable recovery. If playing a bounce in the Energy sector, keep in mind that the first upleg will likely be retraced substantially.

Meanwhile, the more broadly-held issues became vulnerable to last week”s broader market weakness. If valid, strengthening among lower-profile candidates, and relative strength among others, should become more pronounced this week.

Note: I publish “The Universe” every weekend, updating my support and resistance calculations for Marijuana sector stocks. It is not a projection, but a handy reference… Non-Marijuana stocks are covered elsewhere during the week.]

Links to || Last week”s Universe || Prior week”s Universe || Previous week”s Universe ||

Tax loss selling is taking its toll. At least, lets hope that”s what continues to motivate wave after wave of selling as the year comes to a close. “LXRP” is the only recently accumulative chart in the sector. Not that others don”t seem to have bottomed already, but nothing else attracted interest last week.