Livestock 12/1/2014

Monday morning”s Livestock first reviewed Crude Oil”s chart, which was making new lows as recently as Sunday night. Then we compared the January Effect”s candidates in the Energy sector, most of which are not making new lows. 

PBR — Probing under its 9.35 support. Closing above it would be likely at least to test 10.50, where I might consider selling and waiting for a close above 10.85 to rebuy.

BTU — Likely to test 9.40 support, which must then hold through the close to consider that a bottom is still forming. Bouncing too quickly could be limited to 10.75.

CLF — Friday”s test of 8.80 support is being retested, along with the Falling Knife setup we took separately two weeks ago.Having already closed back above 8.80 on the day it was tested, the retest has room down to 8.00 before the bottoming potential becomes suspect.

RIG — The bottoming pattern has developed into a Falling Knife, but not an attractive one. The excessive selling suggests another shoe is going to drop, so I”m withdrawing this from January Effect candidacy temporarily.

We also discussed new January Effect candidates — which happen to be in the Marijuana sector — along with another recently bottomed candidate in the sector.

CARA — Attacking resistance that would trigger a second upleg underway.

AERO — Volume is thin, but relatively bullish.

ATTBF — Compared again to TRTC low, which also was not a straight shot higher.

Other Marijuana stocks covered either to update or to point out lessons in their patterns include: IGRW, MJMD, BRDT, DEWM, MCIG, and GWPH. Special attention was warranted to GWPH, whose recovery attempt had already warned last week that was false.

Requests were also addressed: LINE, DMLP, TWTR and TSLA.