Bigger Picture

Groundhog Day?

Recall just 24 hours ago that futures were trading higher pre-market, indicating a gap up. The open”s gap up then extended to attack July 3”s highs. Then Yellen spoke. Bye-bye prior highs, see ya later gap up, hello morning plunge.

The drop ended by noon, and the afternoon traded flat-to-higher. Overnight action has improved again, retesting not only yesterday”s opening posture, but also attacking July 3”s actual high, all but touching it. All pre-open.

Yellen speaks again at 10:00 ET. The market will react to varying degrees depending upon whether she is simply asked about yesterday”s critique, or — if she doesn”t like the big middle finger the overnight rally is flashing at her pre-open — she may proactively double down on her comments and broaden the critique.

Perhaps the topic won”t come up, at all.

I focus on this, this morning, because I do believe that the next peak among speculative stocks will trigger a correction among MJ stocks, too. And a peak among speculative stocks doesn”t need Yellen”s help. A new high close today would alleviate the concern for a near-term correction through Friday”s expiration, or later.

We”ll do this morning”s Livedesk at 10:45 ET. I”ll send a reminder with the appropriate links. Meanwhile, look for my post-open observations in this post”s thread on the Activity Feed.

Enjoy!

Here”s the link to this morning”s Livedesk:
http://new.livestream.com/accounts/7617211/events/2865745

We discussed the following stocks (not including subscriber requests):
ENRT — Pullback to .14 area may have corrected yesterday”s surge.
TAUG — Close above .57 would signal pullback had ended.
VAPE — Close back above 2.37 to absorb the pullback, above 2.48-2.53 to resume the rally.
GWPH — Must close positive to indicate pullback is absorbed.
TRTC — Displayed the trendline supports that are being tested.
VPOR — Attractive 61.8% pullback can”t afford another dip under .0615.
CARA — Testing 12.90 pullback objective so closing above 14.05 is bullish.
ERBB — Just probing under .0245 is not bullish, but closing under .0225 is bearish.
ATTBF — Holding up well, but must closing above .66 to maintain momentum.
FSPM — Still behaving as if another shoe is going to drop (or a big seller).
STEV — Might not get my sub-$6 objective if .08 apex maintains its recovery, which would target .11.
SPRWF — Still behaving well, must avoid closing back under .09.
CANLF — Too little data for confidence, but very interesting bullish line in the sand at .39.
CANN — Pattern slightly reminiscent of ATTBF”s decline. Under 3.75 points much lower.

Despite initially probing above yesterday”s highs, the opening hour reversed down into negative territory. The next half hour has extended. Temporary detour, or topping? Perhaps a little of each. We”ll discuss that, review MJ stocks, and then analyze charts of any stock you request — at 11:15 ET.

11:15 ET links are below… My earlier comments are reposted lower.
http://marketfy.com/product/marijuana-stock-technical-trade-alerts/livedesk/
http://marketfy.com/product/marijuana-stock-technical-trade-alerts/chat/

At the open:
TAUG — Dipping into the .053-.056 pullback target noted yesterday.
GWPH — Not buying weakness at this stage
Post-open:
ERBB — The critical .0245 level is being probed by fresh lows through the open. Friday and Monday”s Livedesks displayed the uptrending support that was already being tested, and which is now being broken.
TAUG — .71 resistance would be a minimum objective for a next bounce. Having fully tested the pullback objective, back above .57 would signal that bounce is underway.
Except for STEV, I”m not seeing any fresh highs among today”s gainers. There were several earlier but they”ve reversed back into negative territory — among them ENRT* and EDXC, which closed too low yesterday to maintain follow-through.
(*Having waited until the final 15 minutes to even probe above .18, the pullback potential is even greater, as is the likelihood of rejecting the immediate attempt to extend higher.)
CARA — Fresh lows testing 12.90, which must hold through the close to begin forming a bottom.

Good morning!

Index futures have recovered from an overnight dip. New highs are within reach today. One potential obstacle may be Fed Chair Janet Yellen, who is testifying before Congress this morning. Perhaps her comments will facilitate the rally. Other FOMC members have begun speaking less dovishly, but this morning”s Retail Sales data miss makes that less likely right now for the most dovish FOMC member. So, perhaps the question is less about retesting the high, and more about what would happen next. That question won”t be important if this morning”s open hasn”t resumed rallying.

We”ll look at the indexes during this morning”s Livedesk. I”ll send a reminder at least 15 minutes before it begins. Meanwhile, pre-market observations will be posted to this thread.

As promised, a lot of updated levels and outlooks for a lot of active MJ stocks. Be sure to watch today”s Livedesk for info, and if you asked for a chart analysis in the previous thread.
http://new.livestream.com/accounts/7617211/events/2865745