Bigger Picture

With the exception of EDXC, everything sold Friday is down from a little to a lot. I have said before that EDXC is one of my favorites, with my favorite being PHOT (which at least is not making a fresh low, yet). Several that were higher earlier are now much lower, and the broader market seems neither willing nor interested in recovering this morning. But the favorites that I noted in the Open”s Interest blog post, and the degree to which Friday”s sells are extending lower, only underscore my caution of the past 2-3 of weeks… Which, by the way, is 2-3 weeks of a normal correction ALREADY played out.

Watch the higher-profile stocks for insights into how the sector will perform by today”s close. If the likes of GWPH, ATTBF, PHOT, MCIG, TAUG, TRTC etc. one hour after today”s open are under Friday”s lows, then the next round of selling will have arrived. Many opens are weaker, but that”s not yet definitive.

Breakouts (BO)
STEV — Still challenging its recent high, and only challenging it i.e. not overheated: .295 to .395 and .47
PMCM — .006 to .0075 and .011
TAUG — I would only consider buying strength, triggering an inverted H&S above .088 to .118, possibly higher

Pullbacks (PB)
NVLX — its third-day surge ended Friday, but the quick substantial retracement creates room for a daytrade bounce: .44 to .53

General Interest
PHOT — Room up to .63 just as noise in the range, but any higher on expanding volume could run.

Today”s filter is… Tabula rasa and Carte blanche.

Clean slate and Blank check. The two cannot be confused with each other. They do share one thing in common, and that is exclusivity. A clean slate is not clouded by previous etchings on the slate. And a blank check doesn”t represent any other value but what it has yet to purchase.

Friday I sold both profitable and unprofitable positions alike. All were failing to hold relevant supports — some not until Friday, but all had been declining. The profitable positions had been much more profitable previously, and the unprofitable positions had returned gains they made immediately after their purchase.

I did this to have a singular focus on Monday morning. Period. I”m not bearish on the marijuana sector, not one bit. Anyone reading that into the move is not reading the comments I made with each sell order. I am eager to put the money back to work this morning.

Probably not all of it. While the broader market”s weakness has extended down overnight, it isn”t yet crushing speculative premium. And two or three news items this weekend may attract new buyers to delay the opening dips I wanted to exploit. And still want to exploit.

But this morning”s action is a little less likely to gap down sharply and then trend down much further as falling prices attract capitulation. Gaps up can attract selling pressure too. The proof will be in whether any prices run higher through the morning, and small opening dips are recovered. 

Any less bullish behavior would remain vulnerable. We”ll keep tracking the breakouts (BO) identified in the Need to Know videos, and also assess any recovery attempts this afternoon.

That was quick. Apparently, I am the only one with access to view the Livedesk page. I”ve ended the test, and I”ll have a backup ready to survey the market situation tomorrow morning.

I”m testing the Livedesk link as of 5:24pm ET. I understand there has been difficulty accessing it, so please report your experience here if you can”t get to the page, or you can get there but don”t see and hear the broadcast. I”ll finish the test in several minutes.