Bigger Picture

Let”s do it. Meet me at the Livedesk in several minutes at 5:30pm ET to review some carnage… I mean charts… for up to 30 minutes.

You wish this were a test. Actually, it is. Every day is a test of what you learned from the prior day and from all the cumulative days in this 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.

As a reminder, one thing attracting me to this sector as a trader is its volatility. Since markets don”t trend in straight lines, I expect there to be very compelling bounces. That would be normal.

Days like today, like last week, and days like some of those bearing down on us now, these days are exceptions. They”re exceptions because they give us weeks or months worth of observations in the span of a few hours. It is an awesome opportunity to fast-track the learning experience.

Of course, that learning can be painful, too. Sorry to have to remind you of this, but those are the lessons that stick. How can we get the best of both worlds — the education without too much pain? By managing risk. We”ll learn more about that. 

For now, chill. Look at some charts, put together a wish list of where you might want to buy back some stocks. I”ll add to this thread if anything seems interesting before the close, and we”ll look at charts together after the close.

     Enjoy!

Discomfort among market participants isn”t necessarily bearish. Discounting prices can be like stretching the rubber band to the point of it snapping back up. But intervention isn”t necessarily bullish. Without an explanation, price can”t discount the “news.” This environment is not conducive to trading. I”ll have more on this later, but for now — following are updates to today”s parameters, and then other setups I”m monitoring…

UPDATES
MCIG — Testing today”s .67 maximum pullback. Closing under it would mean this attempt to resume the rally had failed. Closing back above at least .745 support would be bullish.
TRTC — Testing its 70 maximum pullback, so recovering its .80 support would be bullish (on volume).
EDXC — Testing its .21 maximum pullback on expanding volume. Awesome if recovered today, dangerous if not.
UTRM — Testing its .0073 maximum pullback. I wouldn”t feel comfortable holding this any lower intraday, or if it fails to close positive.

MONITORING
VAPE — Monitoring for a buy signal, it has now fulfilled the lower-end of my original 13-15 target, as well as the additional point down to 12.25 that was required by the delay.
MDCN — Monitoring for a third-day surge pattern, which was fulfilled today (albeit barely). If today”s reaction down is too aggressive, a retest of today”s high could become likely.
PMCM — Monitoring because the open was firm. Closing above the open”s .049 high would start to be bullish.
Also monitoring TAUG and FITX…

As traders, our focus is firstly on risk. There isn”t any way to assess the value of a position”s potential reward if we don”t know how it compares to potential risk. And now there is a new unknown risk in the equation with PHOT being halted. I”m looking at adjusting entries, of course, but not considering this to be an ongoing sector problem.

Today there are 12 stocks with parameters we”ll be monitoring. Don”t forget the general rules. I am holding my breath for the introduction of live charts this morning, as near to the open as possible.

Low volume on dips to support, high-volume on strength.
Consider exiting intraday support test doesn”t recover by the close.
Reassess a target/resistance test that holds the close.

CBGI corrective bounce .24 / .33
—– .12 support
—– .11 maximum pullback allowed

EAPH pivot-reversal follow-through targeting .065-.07
—– .048 resistance
—– .042 support
—– .033 maximum pullback allowed

EDXC key-reversal follow-through targeting .032-.-35
—– .027 resistance
—– .225 support
—– .21 maximum pullback allowed

ENRT would prefer a dip to buy, but high-vol resistance is ok
—– .505 resistance
—– .036 support
—– .029 maximum pullback allowed

HPCS cup & handle targeting .10 and .165
—– .037 resistance
—– .029 maximum pullback allowed

MCIG breakout potential targeting .99
—– .815 resistance
—– .745 support
—– .67 maximum pullback allowed

MWIP head & shoulders fulfilled, recovery targeting .56
—– .345 support
—– .33 maximum pullback allowed

PHOT low-volume key-reversal
—– .57 resistance
—– .435 support
—– .428 maximum pullback allowed

SKTO gap up could run higher intraday
—– .026 resistance
—– .023 maximum pullback allowed

STEV correction ended, resume breakout attempt targeting .42
—– .265 resistance

TRTC huge (too huge?) key-reversal follow-through
—– .98 resistance
—– .80 support
—– .70 maximum pullback allowed

UTRM breakout targeting .015
—– .01 resistance
—– .0073 maximum pullback allowed

CANN — watching the initial trading, but keep in mind that from a charting perspective, no good levels will be readily available. Traders focus heavily on defining risk, which of course is impossible without knowing levels. We”ll watch retests of intraday lows and highs.GWPH — watching 58-59 for a potential short-entry