Bigger Picture

Weekend Moves…
I will be testing the new “Livedesk” feature of being able to review charts with you in real-time on the site. I”ll post an Alert if/when starting that, probably Sunday.

As a general note, the broader stock market has formed a setup that makes this afternoon terribly vulnerable to slide significantly. That would trigger a two-day pattern which would makes Monday uglier, yet. If the broader market isn”t back in the green coming out of the noon hour — or, worse, deeper into the red — then stocks like ours with a speculative premium could be crushed.

Clearly, Tweed”s debut is influencing today”s trading. So, it probably influenced recent trading. A few initial points of focus:

GWPH — Utterly rejecting yesterday”s bottoming effort. Will sell from the portfolio this morning. Will re-buy on a close back above 59.25.

ERBB, TWTC — Will have buy parameters in this thread later this morning.

EDXC — Will sell today on a close under .207, and otherwise hold long.

ATTBF — It might be taking two days to develop, but the probe under recent lows is trying to “slingshot” back up. I will sell this from the portfolio on a negative close. Otherwise, closing above 1.87 (not necessarily today) would signal the pullback had ended.

CBGI — Support has failed. The attempt to manage exit into strength is moot. Selling this from the portfolio now at or around .14.

ENRT — Close above .59 would confirm the .55 support test had held. Closing slightly under .55 yesterday keeps the burden of proof on buyers. I will sell this from the portfolio if the close isn”t high enough.

Today”s one thing is… Tweed.

[This space left intentionally blank.]

Recognize that? It”s one of my favorite quotes. It”s not from a novel. It barely qualifies as a pamphlet. It is from the prospectus to an IPO (initial public offering).  It is legally required to be on all blank pages, preventing an unaffiliated person from adding something that hasn”t been vetted.

Tweed is not an IPO, but for my purposes it may as well be. There will be absolutely no trading history for this entity (the reversed shell is wholly unrelated). The valuation might have a floor based on recent corporate results, or on future results if/when Canada increases access. More likely, Tweed will trade based on perceived direction of its share price.

Like so many of my favorite quotes, “this space left intentionally blank” has so many different meanings. On its face, it is intended to prevent abuse. But it cannot prevent human nature from filling the void with its own creative and wishful thinking.

Tweed will trade on that. Which is normal, as that is how trading works. That”s how it worked for the marijuana sector. Now the blank space”s wishful thinking will be replaced with facts, perhaps still a little nebulous, but closer to earth. And removing that unknown will allow the rest of the sector to work again, too.

Today”s video discusses the marijuana sector”s current correction. Again. I also address some examples of exiting a position: Why-to, how-to, risks of different choices, risks of delaying a choice altogether.

Tweed”s trade date is upon us. To the degree that has been hampering other stocks, this event should give us perspective on what the sector”s next stage looks like. And when it will look like that. Or like anything, but what it”s been starting to look like.

Sadly, it took one person”s troubles to elicit a lot of great comments and discussion among other subscribers about their management strategies and trading decisions. Keep the conversation going on this post”s thread.

Enjoy!