Bigger Picture

Thanks for attending today”s Livedesk, which was recorded and can be accessed from the Livedesk link in the left sidebar.

Did someone say, “Livedesk”? Yep, me. About an hour ago… Sorry for the delay, but now I”M the one waiting for YOU. Didn”t see that coming, did you? Anyway, the Livedesk link is the left sidebar. We”ll start at 12:15 ET.

Listed below are marijuana stocks meriting focus today, and any updates on stocks previously listed…

Today is the week”s last session. Volume evaporates by late-morning ahead of three-day holiday weekend. Usually, that also takes the market”s price volatility along with it. So, don”t rely on price action you see during the morning to persist through the noon hour. This is also “expiration”. That tends not to effect the marijuana sector since almost none of its stocks are optionable.

Several of yesterday”s “Open”s Interest” parameters were deserving of Trade Alerts that I would have triggered if not for my being on planes all morning. ATTBF, BRDT, PMCM, SPLI, TAUG and TRTC each probed above resistance. I”ll discuss them first, with their entry (and exit) parameters for today. Then I”ll list other coverage.

Yesterday”s qualifiers:

ATTBF surged at the open on higher volume. Its first dip touched and bounced off of the .86 resistance that I listed yesterday. ATTBF extended to fresh highs at 1.07 through the close while volume expanded again. A second consecutive higher close today would help to confirm the 1.72 target is in-play. I”ll buy a dip to .91-.95 if possible, and exit that position if the close seems likely to be under .86.

BRDT initially dipped but immediately reversed up into positive territory above my .401 resistance. The price level remained recovered through the close, which was under the morning”s high, but a late attack on .401 reacted up into the close. Today I”ll look to buy a probe above .465, or manage entry on that probe”s reaction down. I won”t hold that position if .40 appears not to be holding as support through the close. Otherwise, the stock is likely targeting .53 and .79.

PMCM gapped up to and through .0035 resistance. That went nowhere through the close, but I”ll continue giving it a benefit of the doubt so long as .0035 holds as support. Above .0039 on volume Thursday would help to confirm the pattern”s .0048 target.

SPLI immediately trended above.085 resistance. Volume quickly died during a pullback to .085 as support. Almost any fresh strength Thursday would suggest the pullback held and the rally was resuming, targeting .31

TAUG consolidated under.054 until a late spike up to almost .062. I”ll try buying between .52-.57 expecting a target of .082

TRTC Gapped up through .632 resistance. Volume was average, but it did expand into the close while price improved to session highs. I”ll look to buy almost any initial strength into positive territory, with a stop under .632.

Other coverage:

EDXC held its .17 resistance yesterday, but its break today still would target .24

ENRT trended up throughout the day and through almost all of its .33-.36 resistance. Volume was light, so I”m going to watch for a dip to .305 to buy, or for a shallower dip to bounce above .36 on volume, to put into play the .69 target.

ERBB opened up to .052 and traded sideways there throughout the day, closing there. I”m guessing that .052 is relevant. I”ll buy above it if volume is expanding, for a target of .07… But I”ll exit that if the close is back under .052

FITX was flat all day until spiking up at the last hour. Then it was flat again into the close. I”ll consider buying a dip to .061, especially if gapping down on light volume. Initial strength above .067 might be of interest, too. New highs won”t be in-play until actually closing above .085

GWPH volume surged at yesterday”s close. I”ll buy above yesterday”s 45.75 high to as high as 48.25, with potential up to 58.50 and 68.00

Repeating:

HPCS .0333 would target new highs above .06

MCIG Close above .59 would target .80

STEV above .23 would target .49

New mentions/parameters:

VAPR traded exclusively in positive territory yesterday, but volume stank. I”ll consider buying above yesterday”s .16 high on volume, but big resistance still lies above at .18. Minimum objective would be .28

ICBU bounced from a new low back up to the prior low on flat volume. I”ll consider buying if follow-through seems sustainable, possibly not until next week.

CANN surged back to its post-halt high. Closing higher Thursday would deserve extra confidence.

Monitoring CBGI, GRNH, MDCN, MDRM

Passing BABL, MWIP

Enjoy!

Today”s one thing is… Evolution.

“Survival of the fittest” is used often in reference to Charles Darwin”s evolutionary theory. The phrase actually was coined by Herbert Spencer, upon reading about “natural selection” in Darwin”s “Origin of Species”.

Survival of the fittest, natural selection, whatever.

We”re witnessing our own little accelerated experiment among marijuana stocks. One thing I”ve said here during the past several weeks — during the sector”s pullback — is that not every pot stock will participate in the next upleg. Falling stocks has the cathartic effect of forcing buyers to look a little more closely at the horses they”ve been backing. Upon closer inspection, some companies will attract more buying at cheaper prices.

Similarly, other companies will lose support. And their falling prices will fuel a self-fulfilling prophecy that attracts sellers simply for the sake of selling. Occasionally, even these stocks will “dead cat” bounce (pardon the graphic, but the term is based on the suggestion that even a dead cat falling from a window sill will bounce). That”s not less evolutionary, since those falling stocks become the beneficiary of environmental changes — namely, running out of sellers and becoming underpriced, even for their own pitiful futures. So they bounce to levels that attract sellers again.

Capitulation and bottoming can resemble a dead cat bounce, in that it is a messy affair at first. If this week is marking a low in the marijuana sector, then some of its stocks will start taking the lead in recovery. Others will follow, despite initially lagging. Be careful not to confuse those with the losers.

Sadly, “survival of the fittest” can also apply to traders and investors that were unable either to sidestep the sector during its decline, or who were forced out before its lows. No stock coverage service can advise individuals on their own portfolio allocations. But we can point out the harsh reality that this is part of the market”s evolutionary process, and inflicting the greatest pain can indicate a price extreme.

To quote my own blog post from one week ago today, writing about the market as a mass psychology lab: “The better students realize early that they are also the subjects. Their fear is the market”s fear. Their extremes are the market”s extremes. When they accept that they are part of the market, their vantage rise above the market, and have the best vantage point of all.”

Thanks again to all that attended today”s Livedesk stock review. Its recording is linked from the Livedesk page found in the sidebar.