Bigger Picture

I”m releasing my special January Effect report this weekend. The list includes actionable parameters and annotated charts for each candidate. We”ll be reviewing them at each Livestock, and I”ll be commenting intraday as market conditions may require.

The Marijuana and Oil sectors are well-represented, as you might imagine. But other stocks are included, so long as they fit the criteria we discussed in last month”s webinar on the topic.

If you have any that you want to be considered for inclusion, be sure to post them today in this thread on the Activity Feed. Enjoy!

The market did something ugly this morning. It printed new highs. Actually, its overnight futures trading had already printed new highs. Retesting the highs this morning without extending higher killed the rally”s momentum.

That”s not the ugly part.

The above describes the S&P 500. Its overnight high was retested as close as possible without actually touching it. The NDX and Dow overnight highs were significantly higher. And all have reversed into negative territory — NDX just barely.

So, all three major indexes rejecting new trend highs, and reversing into negative territory. All within the context of an upleg that recently has been extending only grudgingly.

The market loves a challenge.

This afternoon”s lows are essentially on the precipice. Falling over just a little bit further would likely fall over a lot. Otherwise, this is the pullback”s bottom. So, extending the decline through the afternoon would be bearish. But rallying to close positive (basis S&P 500) could give the rally new life.

In Monday”s Livestock we discussed the setup for “Retracing plunges and surges” that can often identify better entry points, or just quick trades. We also discussed the following stocks:

DEWM, January Effect candidate: Up ~30% on no news, and entirely plausible that a bottom is in. (Went on to quadruple its gain since then.)
BLPG, Not enough price history to analyze.
MDBX, Will not be a January Effect candidate.
TRTC, One reversal setup didn”t catch. Only one now available is to close above .42. Monitoring for more.
STEV, Rare exception to “don”t buy weakness” among MJ stocks… so long as tight risk controls are executed no lower than .075.
TAUG, Volume difficulties.
INSY, Impressive follow-through to Tuesday”s initial earnings reaction. Retracing that surge to its support.
RIG, Should be on its way to fresh lows that satisfy the decline”s targets.
PBR, Blip-up from having gapped down to new lows was a warning shot across the bow. Now RSIs diverging positively at new lows further reflect weaker selling pressures.
BTU, Retesting recent interim high on expanding volume.
URG, per request
LINE, per request

So, how”s it going? Good, good. Hey — I”m having a Livestock this morning at 10:50 ET if you”re around. I see some questions on the Activity Feed that I”ll be reviewing. We”ll also look at recent relevant price action among several Marijuana sector stocks, and probably get to most questions that attendees have. I”ll post access instructions to this thread, or you can scroll down to Monday”s announcement at your leisure.

See you at 10:50 ET.

Two observations of the open…
INSY — Gapping up on earnings, and above the $37 range. Having probed 39.30-39.50, closing above it would signal the rally had resumed.
TRTC — Probing .405 yesterday was no assurance of closing above it, and now lower prior highs under .38 are being attacked again. Must hold this test and close above .405 to signal selling pressure was absorbed.