Open’s Interest… Tue June 3 2014

By Rod David | June 3, 2014 - 7:23 am

Welcome to Open”s Interest for Tuesday

(Setups and parameters are below…)
This week”s Universe || Last Open”s Interest || Non-MJ Requests

If an unhalted stock plunges, does it make a sound? It used to, but not anymore. Another halt was lifted Monday in FSPM, it dropped more than 60%, and the sector didn”t offer any homage. More so, no one was surprised, because everyone is comfortable with the new environment.

The broader market is another story. The S&P 500 (SPX) has reached another new high, which the Dow has finally joined. The Nasdaq-100 (NDX) is right on the cusp of joining them. Each has recovered from April lows, which were well above February”s prior lows. Then there is the Russell 2000 (RUT), which most resembles our marijuana sector.

The RUT remains in a rut, ranging at its lows. In May it probed momentarily under April”s low, which was under February”s low. The MJ sector is uniquely positioned relative even to the RUT, and especially relative to the other indexes, for ignoring the traditionally difficult summer market funk. Already, the maxim “Sell in May and go away” has been the opposite for us. But that doesn”t immunize the MJ sector from ebbing and flowing investor sentiment.

I had noted the bottoming effort on April 15, which proved important, but premature. I noted the next one two weeks ago, which has proved important, too, if not also well-timed with very broad participation. But the broader market has reached crossroads. Its new high is tenuous, and cannot hesitate to extend higher pretty much here and now to avoid another downdraft. And almost any downdraft would encourage profit-taking elsewhere.

Many of our stocks have had nice runs recently, whether only back up to prior resistance (e.g. MCIG), or through one resistance and to another (TRTC). Others on our watch list have pulled back to support (ERBB, FITX, GRCU, VAPE), and some languish (TAUG). All are at a crossroads, too. Extended rallies may get hit, extended consolidations may dip, and pullbacks might only blip-up before entering their own consolidations.

No stock is an island. It may not rise and drop to the same degree or with the exact same timing as the broader market. But it will be influenced, if it”s not itself already an influence. Nevertheless, we”ll remain bullish near-term until the broader market stumbles.

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Enjoy!

SYMBOL	suppt	resist	target	stop	SETUP
SPRWF	.07	.105	.15	.06	PULLBACK
	Pullback reached support near day”s end Monday, don”t tolerate much delay to reversing back up
BRDT	.32	.40	.58	.35	BREAKOUT
	Continued firming to resistance Monday, raised stop
TRTC	.44	.65	.91	.575	BOTTOM FISH
	Still testing big resistance at Monday”s close, raised stop
MCIG	.375	.45	.57	.44	BOTTOM FISH
	Current ranging should explode higher Wed or Thu if valid
TAUG	.032	.042	.055	.029	PULLBACK LIMIT
	Two weeks of ranging with upward bias is still testing its stop
TWMJF	2.65	3.05	3.75	2.52	PULLBACK LIMIT
	Retest of last Wed”s dip still needed to launch next upleg
VAPE	1.65	3.25	4.65	1.92	FALLING KNIFE
	Last day to tolerate $2 testing to avoid retesting lows
-MDBX	17.95	20.15	12.25	21.30	PULLBACK
	Recent drop not attracting buyers, or volume
-GWPH	67.15	69.50	54.00	71.00	PULLBACK
	Started the week by dropping back to support
AGTK	.225	.268	.380	.215	UP/DOWN-CRASH
	Dropping coverage as volume is disappearing
ENRT	.13	.20	.33	.17	UP/DOWN-CRASH
	Mon”s intraday dip corrected bounce, must surge if valid
ERBB	.029	.034	.050	.025	UP/DOWN-CRASH
	Pullback to support has formed Falling Wedge
NVLX	.225	.290	.450	.245	FALLING KNIFE
	Holding bounce off of low”s retest, prefer not to buy strength

Breakout
(consolidations or basing that is forming an accumulative pattern )

Up/Down-Crash
(extended trending with only 1-2 countertrend closes, ready to snap back)

Pullback Limit

(breakouts and bounces that have retraced 61.8%…

these situations are often make, or break)

Bottom Fish

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

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

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, triangle — lower lows coming?)

Falling Knife

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

Rocket Launch

(sudden explosive interest that gains traction)

Monitoring

(observations of other stocks of interest)

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

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