Bigger Picture

Do you need input to make a decision before today”s close? Let”s talk about it! Go to this post”s thread on the Activity Feed, tell me the stock AND your specific question about it.

Time-permitting, I”ll answer sole symbols and general questions. I might also direct you to scroll down through earlier threads if something recent was posted earlier on the Activity Feed (you should be doing this anyway).

We”ll cover what we can for 20 minutes from 3:15-3:35. Ready, set… Go!

MDBX — I like the news about a new listing, which makes the stock more attractive as a candidate for institutions to participate in the sector. Fresh highs today above 29.75 should accelerate higher, with potential to 35.

ENRT — Dumped through the open to test my .55 add-on parameter. Closing back above .61 today would signal that the test had held. I”ll sell it on a close under .55.

DEWM — 18th time”s a charm? Yet another gap up, the latest in a series of gaps up that aren”t extending the next day, but aren”t breaking back under support. Until the latter, I”ll keep giving the former every benefit of the doubt.

GWPH — Reacting up sharply from an opening drop. Back above 58.15 would start to signal momentum reversing up, targeting 59.80 and 61.75.

MCIG — Terribly weak this morning, attacking .70, two days after failing .80 resistance. Closing today back above .74 would signal that the drop was a temporary correction, and probably done.

NVLX — Extending sharply higher at the open to test .42 resistance. Pullbacks must now hold .38 to maintain the breakout”s momentum.

PMCM — Opening surge is trying to resume the recent breakout.  Volume has room for improvement, so the stock is most vulnerable to flat-lining today without more interest.

BRDT — Initial weakness, monitoring…

Today”s filter is… Cash is a position, too.

A friend used to tell me (and probably everyone he came into contact with that day) whenever he received yet another cold-call from a broker. “I”m already 100% invested… in cash!” On a side note, he never understood why that never led immediately to a hang-up.

There is always room in a portfolio for cash. The goal should not be to become fully invested. 

Some argue for maintaining a balance because it cushions the overall fluctuation. I find that silly for a speculative approach, which should be the most accepting of fluctuation. Another suggestion is to keep cash available in case of a sudden mis-pricing, like a stock”s bad reaction to only a rumor. That seems like a circular argument — when the fish are running, we might even borrow to get as many hooks in the water as possible.

Only a few fish have been running lately. More and more every day, especially as some recent basing patterns start attracting buyers. But that has to be proved, and buying too early can be riskier than paying a little more for proof. There is no rush at this time to be fully invested. A single position”s size never should be based on the current availability of attractive candidates. The portfolio”s success shouldn”t rise and fall on the performance of a single position. 

So many rules. Who knew that buying marijuana stocks could be so difficult? You”d think it should be more laid back than any other sector. But we”re not investing — we”re trading. And the only difficulty of the rules is that they make us impose self-restraint. But it”s really not that difficult to want to limit our exposure, especially not after seeing our portfolio value shrink because we didn”t follow (or know about) the rules.

Now, that”s difficult.

This special edition of Need To Know reviews stocks, not necessarily as opportunities, but as examples. What sort of lens should we use to view candidates? How do we filter which ones to stalk, which to chase, and which to exit? Please share your thoughts, have a healthy discussion — the market is giving us a window to get on top of our game.

ATTBF — I want to see a slingshot, from probing intraday under Monday”s low to closing back above it. Flush out pessimistic sellers and defend support. Instead, today attacked yesterday”s low, then hovered there. Bouncing prematurely now might lead me to sell the position from the portfolio.

BRDT — Sitting at equilibrium, having absorbed its pullback, with a key-reversal at the top wanting to be retested.

CBDS — An example of stocks that might be flushing out sellers, but are at risk of breaking support to do so. I would much rather buy strength on this stock, instead of bottom-fishing what might take a long time to recover, from much lower lows.

CBGI — An example of stocks that should be rallying already, testing support, but are at risk of launching a new downleg. I”ll be quick to sell a little lower.

EDXC — Another example of stocks that should be rallying already, testing support, but are at risk of launching a new downleg. Still some room below, and a key-reversal above that helps to justify the risk.

GWPH — Tuesday”s bounce tested resistance, which had been the decline”s target that we were tracking. Probably should have sold it there, but I”m giving it one just a little more room.

NVLX — An example of a stock that is finding interest, emerging from its pullback on volume.

PMCM — Another possible breakout candidate. Volume doing well into resistance, without price pushing back.

STEV — Another breakout. The sector is rewarding stocks that have the goods, and there are probably more out there, gaining attention.

TTDZ — An example of a key-reversal that identifies immediate weakness, but the weakness was short-lived. They don”t all suffer for long. Even then, we examined the reasons why this reaction might only be delayed.

AFTERNOON RUSH — 3:15-3:35 ET

Do you need input to make a decision before today”s close? Let”s talk about it! In this post”s thread on the Activity Feed, tell me the stock AND your specific question about it.

Time-permitting, I”ll answer sole symbols and general questions. And I might direct you to scroll down through earlier threads if I something recent was posted earlier on the Activity Feed (you should be doing this anyway).

Ready, set… Go!