Open’s Interest… Mon May 5 2014

Welcome to Open”s Interest for Monday

True story… At the end of my conversation with a guy at the gym Saturday, he said, “Have a happy holiday.” I have no idea which holiday he meant. This was Saturday, May 2. Was he still celebrating May Day? Is he that gung-ho for Cinco de Mayo? Mother”s Day is still a week away. Then it occurred to me

The three-week anniversary of my bottom call is approaching. It”s not actually a holiday. Rather, the marijuana sector”s volume has been “on holiday.” I”m sure that”s what he meant, some sort of a back-handed compliment. 

But he”s right. GWPH continues to suck up all the oxygen in the room. The number of new highs in the sector can be counted on one hand. The daily list of relative new lows is larger, and constant, albeit much smaller than into April”s lows. Evaporating volume has been a mixed blessing that at first welcome for reflecting fewer sellers, and now we criticize for reflecting fewer buyers.

Now being three weeks past the possible bottom, some of bounces have been corrected by attacking the lows, and some bounces have been reversed to new lows. Both of which were expected as the bottom continued forming. This pattern”s measurements suggest that volume begin expanding during its third week, and that its fourth week will resume trending — the only question being in which direction.

Pullback Limit

(breakouts and bounces that have retraced 61.8%…

these situations are often make, or break)

VPOR .114 pullback ||.13 resistance || .109 stop || .195/.25 target
   raised all parameters after Friday”s low held its .103 pullback

Bottom Fish

(basing after extended decline — not really a “trade”)

(breakdown unconfirmed a 2nd day — only buy strength)

SING no pullback || .025 resistance || .016 stop || .045 target
     lowered the resistance trigger and target

Third-day Surge

(2-day surge to fresh highs at risk of peaking — don”t chase higher)

Not a Charm

(third test of retested low — lower lows coming?)

(-
ZDPY) no pullback || 4.65 resistance || 6.05 stop || 2.25 target
    Initiated at 6, met its target on Friday

Falling Knife

(trying to catch the reaction to a steep drop — ouch)

none

Rocket Launch

(sudden explosive interest that gains traction)

ATTBF .95 pullback || 1.07 resistance || .91 stop || 1.38 and 1.68 targets
    raised stop

STEV .145 pullback || .165 resistance || .135 stop || .21 and .25 targets
     we”ve attracted company

Monitoring
(observations of other stocks of interest)

EDXC, ENRT candidates for selling partial or all from the portfolio.

TAUG .054 resistance || .48 stop (can”t buy weakness).

TRTC knife-catch candidate at or under .44 (really want to like this).

MCIG under .455 would target .36-.40 (unless .55 recovers soon).

Open”s Interest is the daily pre-open reference for marijuana stock patterns currently of interest, including other insights and overviews.