Bigger Picture

PHOT — A momentary blip-down to a fresh low under .50 has reacted up sharply to .565. A pullback to .53 would be optimal for resuming the rally.
RFMK — Reacting down from the past two days” confirmed breakout. Optimal pullback target would be .0064-.0067.

Filter THIS! …a pre-open missive that tells you one thing, the most important thing, if you had to filter your view of today”s marijuana stocks price action through just one thing — okay, sometimes two — what would that one thing be?

Today”s one thing is…Rotation.

Capital is not infinite. Except for the Federal Reserve, of course, the rest of us can”t buy every bit as much of every single company that we would want. We must be selective in those opportunities we chase with our limited capital, that money we have allocated to trading.

Everyone is selective in which opportunities they chase. And in which ones they stop chasing. It is not just news stories and press releases that account for some stocks in a sector rising while others are falling. Different companies are more or less attractive at different times, inspiring us to sell a stock that may have surged recently so we can buy a stock that we believe is starting a similar move.

This is rotation. Understanding the concept is important to being a trader. It”s not too difficult. But traders should also always be cognizant of where money is rotating into and out of at any given time, which can change often. Like the wheel of an unstoppable truck, its rotation can lift you up if you catch it at the right time — and at the wrong time, its rotation can roll right over you.

My apologies for the delayed production and availability of Tuesday”s “Need to Know” video… Monday was an exciting day, and varied across the sector. Much of today”s video is updates to ongoing coverage whose parameters were tested and/or triggered. They aren”t categorized, nor sanitized, only alphabetized as follows:

ATTBF
BRDT
CANN
CBGI
CBIS
DEWM
EDXC
ENRT
ERBB
FITX
GWPH
ICBU
LATF
MCIG
MDRM
NVLX
PHOT
RFMK
SKTO
SPLI
STEV
TAUG
TRTC

AFTERNOON RUSH
Interested near the close in a stock? You might already be able to find relevant parameters by scrolling the Activity Feed. But some stocks might need an update, anyway. Post symbols and their questions (please, not just symbols) to this Alert”s comments section. I”ll address those that can be addressed quickly in a 10-minute window that begins sometime after 3:40 ET.

MCIG — Under .85 targeted .65, which is being tested by a huge plunge on a reekingalpha review (I might have the site”s name spelled incorrectly, sorry). I would buy it for the portfolio, if I didn”t already own it right here.
CBIS — Volume evaporated on this bounce from session lows at .155 back up to .174. Otherwise I would be inclined to buy before turning positive above .18… Regardless, I would be prepared to buy early strength tomorrow (Tuesday).