Bigger Picture

Apparently a major power outage in Detroit, but it doesn”t seem to have affected Marketfy. Regardless, let”s take the opportunity to repeat longstanding instructions in case of this site going offline that I will make any time-sensitive posts to RodDavid.com

Monday morning”s Livestock first reviewed Crude Oil”s chart, which was making new lows as recently as Sunday night. Then we compared the January Effect”s candidates in the Energy sector, most of which are not making new lows. 

PBR — Probing under its 9.35 support. Closing above it would be likely at least to test 10.50, where I might consider selling and waiting for a close above 10.85 to rebuy.

BTU — Likely to test 9.40 support, which must then hold through the close to consider that a bottom is still forming. Bouncing too quickly could be limited to 10.75.

CLF — Friday”s test of 8.80 support is being retested, along with the Falling Knife setup we took separately two weeks ago.Having already closed back above 8.80 on the day it was tested, the retest has room down to 8.00 before the bottoming potential becomes suspect.

RIG — The bottoming pattern has developed into a Falling Knife, but not an attractive one. The excessive selling suggests another shoe is going to drop, so I”m withdrawing this from January Effect candidacy temporarily.

We also discussed new January Effect candidates — which happen to be in the Marijuana sector — along with another recently bottomed candidate in the sector.

CARA — Attacking resistance that would trigger a second upleg underway.

AERO — Volume is thin, but relatively bullish.

ATTBF — Compared again to TRTC low, which also was not a straight shot higher.

Other Marijuana stocks covered either to update or to point out lessons in their patterns include: IGRW, MJMD, BRDT, DEWM, MCIG, and GWPH. Special attention was warranted to GWPH, whose recovery attempt had already warned last week that was false.

Requests were also addressed: LINE, DMLP, TWTR and TSLA.

This morning”s Livestock starts at 10:45am ET. Login info:
(iPads and Tablets use the accompanying teleconference info to get audio.)

https://roddavid10.mitel-nhwc.com/join/pcxsrhm

optional teleconference instructions (required for iPad and tablets):
1-605-562-0020
Meeting ID 976-912-682 #
Other requirements can be found here:
http://marketfy.com/product/stock-technical-trade-alerts/blog/1143/view/60141/

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

The first round of price action by this season”s top January Effect candidates was interesting. In all, every base was covered in my introductory comments:
“Some may have bottomed already… Some have yet to bottom…” Don”t forget the last base, which can matter most: And some may not be bottoming at all.”

Energy sector stocks were mixed until China”s surprise rate cut, which proved to be only a last gasp before sliding into OPEC”s Thanksgiving meeting, and then plunging out of it. The sector seems not to be bottoming at all. That macro-fundamental development helps to explain why their individual patterns almost all allowed for a fresh low. But the potential fresh lows were to be only temporary, which will be put to the test this week.

Precious Metals have begun plunging, too. One month ago, very few could even be considered as possible January Effect candidates. But this slide still has time to unleash another round of tax loss selling that forms a bottom. Some issues from the sector might be added next week.

Not all Marijuana sector candidates continued their declines. Many issues had come into support, already reacting to news from the election cycle. This week is their time to prove that tax loss selling pressures have been largely satisfied. I have add two new candidates.

We”ll review the coverage and discuss entry parameters during Livestock. Meanwhile, helpful confirmations that a signal is triggering are expanding volume into price strength, and maintaining the price trigger through the close.

Nov 17 January Effect candidates introduction
linked here.
Oct 9 January Effect webinar
linked here.

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 ||

The Universe has been relatively static through the past three weeks. That”s not currently relevant to whether any individual issue is more able to rally, or less prone to extending its decline. Start making an extra effort to observe during the next several weeks which of your stocks seem to have bubbles floating to the surface — those are the ones coming closer to a boil. Be brutally hones which ones aren”t, because that”s a concern at this stage. The market knows more than me and you, and often it knows more than many insiders.