Bigger Picture

Welcome to Open”s Interest for Wednesday

(Setups and parameters are below…)
This week”s Universe || Last Open”s Interest || Non-MJ Requests

There is no new coverage initiated today due to travel. For the same reason, don”t forget there is no Livedesk on Wednesday. All will return to normal on Thursday.

Speaking of normal, it”s nice to see the positive reactions to positive developments are continuing. And that the positive reactions are infecting the sector with more participation.

Keep in mind that the parameters offered here are for trades. As a target is met, I point out what the pattern must do to maintain its rally, for the benefit of subscribers that might want to hold in anticipation of further developments.

.
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.

PLEASE NOTE: I will be away from monitors due to travel this afternoon. Don”t forget that there is no Livedesk tomorrow, but I will address questions in the Activity Feed”s thread.

We”ll do a 30-minute Livedesk at 10:45 AM ET. Add your stock analysis requests to this post”s thread. After completing them, I”ll get whatever time allows in the chat. A few opening observations…

SPRWF — Gapping up to probe .10, up 35% from yesterday”s close at its 7.00 pullback target. Now a pullback to 8.00 would be expected to hold.

TRTC — Extending above .65 to .71 has produced a “negative divergence” in RSIs. We”ll look at that formation during this morning”s Livedesk. But at this stage, back under .67 would start to suggest this leg is peaking.

ENRT — Yesterday afternoon”s blip-down to test .18 is being retested. Not so much of a blip anymore. Not a lot of volume, but time is money, so the rally can”t afford to hesitate resuming.

Before adding your request here, please be familiar with the guidelines for Non-MJ stock requests:
http://marketfy.com/product/marijuana-stock-technical-trade-alerts/blog/1143/view/47015/

Livedesk is linked from the left sidebar, or just click here by 11:00 ET:
http://marketfy.com/product/marijuana-stock-technical-trade-alerts/livedesk/

Welcome to Open”s Interest for Tuesday

(Setups and parameters are below…)
This week”s Universe || Last Open”s Interest || Non-MJ Requests

If an unhalted stock plunges, does it make a sound? It used to, but not anymore. Another halt was lifted Monday in FSPM, it dropped more than 60%, and the sector didn”t offer any homage. More so, no one was surprised, because everyone is comfortable with the new environment.

The broader market is another story. The S&P 500 (SPX) has reached another new high, which the Dow has finally joined. The Nasdaq-100 (NDX) is right on the cusp of joining them. Each has recovered from April lows, which were well above February”s prior lows. Then there is the Russell 2000 (RUT), which most resembles our marijuana sector. 

The RUT remains in a rut, ranging at its lows. In May it probed momentarily under April”s low, which was under February”s low. The MJ sector is uniquely positioned relative even to the RUT, and especially relative to the other indexes, for ignoring the traditionally difficult summer market funk. Already, the maxim “Sell in May and go away” has been the opposite for us. But that doesn”t immunize the MJ sector from ebbing and flowing investor sentiment.

I had noted the bottoming effort on April 15, which proved important, but premature. I noted the next one two weeks ago, which has proved important, too, if not also well-timed with very broad participation. But the broader market has reached crossroads. Its new high is tenuous, and cannot hesitate to extend higher pretty much here and now to avoid another downdraft. And almost any downdraft would encourage profit-taking elsewhere.

Many of our stocks have had nice runs recently, whether only back up to prior resistance (e.g. MCIG), or through one resistance and to another (TRTC). Others on our watch list have pulled back to support (ERBB, FITX, GRCU, VAPE), and some languish (TAUG). All are at a crossroads, too. Extended rallies may get hit, extended consolidations may dip, and pullbacks might only blip-up before entering their own consolidations.

No stock is an island. It may not rise and drop to the same degree or with the exact same timing as the broader market. But it will be influenced, if it”s not itself already an influence. Nevertheless, we”ll remain bullish near-term until the broader market stumbles.

.
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.

Today”s one thing is… no stock is an island.

If an unhalted stock plunges, does it make a sound? It used to, but not anymore. Another halt was lifted Monday in FSPM, it dropped more than 60%, and the sector didn”t offer any homage. More so, no one was surprised, because everyone is comfortable with the new environment.

The broader market is another story. The S&P 500 (SPX) has reached another new high, which the Dow has finally joined. The Nasdaq-100 (NDX) is right on the cusp of joining them. Each has recovered from April lows, which were well above February”s prior lows. Then there is the Russell 2000 (RUT), which most resembles our marijuana sector. 

The RUT remains in a rut, ranging at its lows. In May it probed momentarily under April”s low, which was under February”s low. The MJ sector is uniquely positioned relative even to the RUT, and especially relative to the other indexes, for ignoring the traditionally difficult summer market funk. Already, the maxim “Sell in May and go away” has been the opposite for us. But that doesn”t immunize the MJ sector from ebbing and flowing investor sentiment.

I had noted the bottoming effort on April 15, which proved important, but premature. I noted the next one two weeks ago, which has proved important, too, if not also well-timed with very broad participation. But the broader market has reached crossroads. Its new high is tenuous, and cannot hesitate to extend higher pretty much here and now to avoid another downdraft. And almost any downdraft would encourage profit-taking elsewhere.

Many of our stocks have had nice runs recently, whether only back up to prior resistance (e.g. BRDT, ENRT, MCIG), or through one resistance and to another (TRTC). Others on our watch list have pulled back to support (ERBB, FITX, GRCU, SPRWF, VAPE), and some languish (TWMJF, TAUG). All are at a crossroads, too. Extended rallies may get hit, extended consolidations may dip, and pullbacks might only blip-up before entering their own consolidations.

No stock is an island. It may not rise and drop to the same degree or with the exact same timing as the broader market. But it will be influenced, if it”s not itself already an influence. Nevertheless, we”ll remain bullish near-term until the broader market stumbles.