Bigger Picture

Market note: Approximately 5:6 MJ stocks in the red vs. green, which is a significant shift from the open or from prior sessions. This comes after significantly extending GWPH”s drop. Not coincidentally, today brings Washington state on-line, which recent MJ stock rallies clearly discounted. Wednesday”s price action should be more revealing, and could produce a better pullback to resume the sector”s recovery. But I wouldn”t exactly rush to be long into today”s close.

There is no Open”s Interest today. Following is a compilation of yesterday”s intraday comments on individual issues. Use this post”s thread in the Activity Feed to ask about and comment on any other stocks of interest, MJ or otherwise. Enjoy!

TAUG — .036-.038 support could not have been tested more precisely. The question is whether it can hold. Its reaction up is testing .0425 which is the minimum requirement to consider the dip as only a temporary correction. Closing above .048 would signal momentum already reversing up.

VPOR — Needs either to recover to fresh highs (unlikely) at this stage, or else to close as deeply as possible back under Thursday”s low. Just overlapping Thursday”s big bar and closing within it (especially toward its lower-end) would form a bearish two-bar pattern that interjects a correction down. Closing under Thursday”s low would reflect pessimism which is potentially bullish from a contrarian perspective. Holding Thursday”s low would reflect optimism. [Closed bearishly back above Thu”s low.]

GWPH — Big spike down just now from 101 to 97, no news yet, but still looking for retesting lower prior highs in the 96 area… I would look for a retest of [Monday]”s (96.25) low, probably not by a little since today”s low fought so hard to try avoiding the inevitable… [Testing it down to 90 this morning, so closing above 93.45 would signal the drop was a correction only.]

RSSFF — Very interesting that last week”s surge into the weekend persisted immediately into the new week. Pullbacks need to hold .67-.72.

VAPE — (Follow-up to pre-open call that the dismissive analyst”s note wasn”t kosher…) Down over 35 cents to attack 2.25, which needs to hold as support to maintain this dip as being only a temporary correction. (Still potential to retest 2.25.)

CBDS — Might be premature in timing, but holding the 7.33-7.66 would be bullish.

EAPH — A lot can/will happen in the interim, but an eventual close above .033 would target .049… Meanwhile, this pullback needs to hold .021 to avoid extending it to .018.

HEMP — I don”t see current news behind [Monday]”s move, but a pullback to .062-.063 would be compelling for long-entry to test .09 (already improved from that support test to end the day with a surge to .074, so pullbacks now must hold .069).

MYHI — The up/down-crash setup can”t apply here because there are multiple consecutive sessions overlapping each other. No more than 2-3 should be allowed that hesitation during an otherwise relentless decline so that it can run out of selling pressure. Instead, the overlapping robs the decline of its momentum, so it”s not really so extended that a snap back is any likelier.

Happy July 7th! (That day in history celebrating the week”s first Livedesk, which begins at 11:00 ET). Add your stock requests — MJ or otherwise — in the Activity Feed for this post”s thread. Then login at 11:00 ET to the following link:
http://marketfy.com/product/marijuana-stock-technical-trade-alerts/livedesk/

Welcome to Open”s Interest for Monday…

(Setups and parameters are below)
This week”s Universe || Last Open”s Interest  

Washington state”s recreational usage comes on-line Tuesday. It seems there is a little more scrutiny compared to Colorado. ABC”s ”
This Week” Sunday morning political show accentuated such things as pot brownie related deaths and the increase of under-age substance abuse patients. These are very real, and shouldn”t be minimized — but they won”t be the highlight of WA”s launch. Anti-pot activists would be better advised to push these concerns when not diluted by the timely stories.

There is no new coverage for Monday, but a couple of issues might be introduced intraday. Meanwhile, I”ll be watching for the theme shifts focus to recreational from pharmaceutical. Not that a repeat of Jan 2014 is at hand, but milestones are being crossed in  awareness, acceptance and legitimacy.

…
Enjoy!

Breakout
(consolidations or basing that is forming an accumulative pattern )

Up/Down-Crash
(extended trending with only 1-2 countertrend closes, ready to snap back)

Pullback Limit

(breakouts and bounces that have retraced 61.8%…

these situations are often make, or break)

Bottom Fish

(basing after extended decline — not really a “trade”)

(breakdown unconfirmed a 2nd day — only buy strength)

Third-day Surge

(2-day surge to fresh highs at risk of peaking — don”t chase higher)

Not a Charm

(third test of retested low, triangle — lower lows coming?)

Falling Knife

(trying to catch the reaction to a steep drop — ouch)

Rocket Launch

(sudden explosive interest that gains traction)

Monitoring

(observations of other stocks of interest)

Open”s Interest is the daily pre-open reference for marijuana stock patterns currently of interest, including other insights and overviews.

I never noticed until preparing this week”s Universe that three FRTD, FSPM and FULL* each have been halted. Each also appears consecutively in The Universe. They weren”t halted alphabetically, but a conspiracy theorist with roulette experience might offer a strategy (*To clarify, FULL was touched by a halt, in CANN)…

More seriously, several lower-profile stocks we don”t regularly discuss did jump out:

— PLPL popped up to resistance on expanding volume and has begun correcting back down to support.
— PMCM”s two-week long rally on expanding volume closed the week testing its resistance.

— STEV continues dropping on heavy volume, which at this rate could be depleted in the near-term upon meeting its support.

— VGPR now has bounced twice from support on heavy volume, and any fresh high would be bullish.