The Universe, week of Jun 15 2015… Prior high, prior high, prior high.
Note: I publish “The Universe” every weekend, updating my support and resistance calculations for Marijuana sector stocks. It is not a projection, but a handy reference… Non-Marijuana stocks are covered elsewhere during the week.]
Links to || Last week”s Universe || Prior week”s Universe || Previous week”s Universe ||
If there”s any single lesson that I”ve reiterated through this service, it is to honor the trend.
“The trend is your friend,” as goes the widely-attributed Wall Street saying. (“Until it isn”t,” as the saying is finished.) The uptrend is a lot more friendly, but at least the downtrend warns you not to buy.
What is a trend? It is a series of higher highs and higher lows (uptrend), or lower lows and lower highs (downtrend). In the latter”s case of a downtrend, between each lower low is a lower high, which I also call the “prior high.”
So, if there”s any single corollary to the single lesson, it is this: The prior high is resistance.
Even in an ongoing series of prior highs, an occasional bounce might pierce it. This would allow the downtrend to give the impression of reversing its trend back up. Perhaps it is — if that prior high is pierced after a period of basing. But not usually when the downtrend”s cadence remains intact.
While bouncing prematurely back above a prior high is almost surely temporary, it can also be a harbinger. Monitor those for a low-volume pullback, and a higher low (preferably holding a 61.8% retracement of the first recovery attempt”s upleg).
Basing is more bullish than trying to rally too soon — especially when the downtrend”s cadence remains intact. Often, the alluring bounce is triggered by a press release, which just happens to come at the downtrend series” predictable cycle low. I mean, come on.
In bullish a sector, laggards can have better results at suddenly reversing their downtrends. Whether playing catch-up, or benefiting from rotation out of leadership. This is not currently a bullish sector. So, view the bounces skeptically.
| Marijuana Stock Universe for June 15 2015 | |||
| Reference this table during stock reactions | |||
| 4-week | # up: | 11 | 11.00% |
| trends* | # flat: | 18 | 18.00% |
| # down: | 71 | 71.00% | |
| *The percentages of stocks rising or falling over 4 weeks. | |||
| symbol | support | resistance | 4-week trend |
| ACGX | 0.000 | 0.003 | flat |
| AERO | 2.310 | 4.030 | down |
| AGTK | 0.008 | 0.022 | down |
| AMMJ | 0.360 | 0.570 | down |
| ARNA | 3.800 | 5.030 | flat |
| ATTBF | 0.035 | 0.075 | down |
| AVTC | 0.000 | 0.400 | down |
| AXXU | 0.037 | 0.140 | down |
| BLOZF | 0.130 | 0.340 | down |
| BLPG | 0.044 | 0.102 | down |
| BNRDF | 0.410 | 0.580 | down |
| BRDT | 0.032 | 0.094 | down |
| BTFL | 0.071 | 0.232 | down |
| CANL | 0.750 | 1.250 | down |
| CANN | 1.690 | 4.600 | down |
| CANV | 1.340 | 1.750 | down |
| CARA | 8.800 | 10.300 | down |
| CBDS | 1.830 | 5.630 | down |
| CBGI | 0.000 | 0.005 | down |
| CBIS | 0.027 | 0.038 | down |
| CGRW | 0.550 | 0.750 | up |
| CHUM | n/a | n/a | down |
| CNAB | 0.530 | 0.750 | flat |
| DEWM | 0.002 | 0.004 | flat |
| DIGPD | 0.235 | 0.465 | down |
| DSCR | 0.000 | 0.025 | down |
| EAPH | 0.008 | 0.013 | down |
| EDXC | 0.019 | 0.047 | down |
| ENDO | 0.016 | 0.025 | up |
| ENRT | 0.017 | 0.037 | down |
| ERBB | 0.003 | 0.007 | down |
| ETST | n/a | n/a | flat |
| EXMT | 0.000 | 0.004 | flat |
| FITX | 0.005 | 0.012 | down |
| CAFS | 0.005 | 0.030 | up |
| FSPM | 0.000 | 0.250 | down |
| FULL | 3.100 | 3.640 | down |
| FWDG | 0.000 | 0.002 | down |
| GBLX | 0.270 | 0.460 | up |
| GRCU | 0.000 | 0.004 | down |
| GRNH | 0.023 | 0.067 | down |
| GWPH | 101.550 | 132.000 | up |
| HEMP | 0.016 | 0.025 | down |
| ICBU | 0.002 | 0.011 | down |
| IGRW | 0.000 | 0.002 | flat |
| IMLFF | 0.100 | 0.180 | down |
| INCC | 0.001 | 0.007 | flat |
| INSY | 29.870 | 36.330 | up |
| ITNS | 0.006 | 0.011 | down |
| LATF | 0.000 | 0.001 | down |
| LXRP | 0.190 | 0.310 | up |
| MCIG | 0.035 | 0.074 | down |
| MDBX | 0.140 | 0.850 | down |
| MDCN | 0.005 | 0.022 | down |
| MDRM | 0.032 | 0.061 | down |
| MINE | 0.003 | 0.007 | down |
| MJMD | 0.000 | 0.015 | down |
| MJMJ | 0.001 | 0.003 | down |
| MJNA | 0.072 | 0.100 | flat |
| MNTR | 0.507 | 0.928 | down |
| MYEC | 0.012 | 0.027 | down |
| MYHI | 0.110 | 0.280 | up |
| NDEV | 0.040 | 0.165 | down |
| NRTI | 0.001 | 0.003 | down |
| NTRR | 0.025 | 0.050 | down |
| OGRMF | 0.304 | 0.615 | down |
| OSLH | 0.001 | 0.005 | down |
| OXIS | 0.023 | 0.033 | down |
| PHOT | 0.019 | 0.065 | down |
| PLPL | 0.220 | 0.315 | up |
| PMCB | 0.110 | 0.163 | flat |
| PNTV | n/a | n/a | down |
| PZOO | 0.011 | 0.017 | flat |
| QEDN | 0.001 | 0.003 | flat |
| REDG | 0.000 | 0.003 | flat |
| RFMK | 0.000 | 0.002 | down |
| RSSFF | 0.069 | 0.266 | down |
| SING | 0.008 | 0.016 | flat |
| SKTO | 0.000 | 0.004 | down |
| SPRWF | 0.141 | 0.230 | down |
| SRNA | 0.080 | 0.140 | down |
| STEV | 0.050 | 0.067 | down |
| TAUG | 0.004 | 0.008 | down |
| THCZ | 0.130 | 0.255 | flat |
| TRTC | 0.090 | 0.180 | down |
| TURV | 0.710 | 1.11 | up |
| TWMJF | 1.420 | 1.860 | flat |
| UPOT | 0.150 | 0.550 | down |
| USEI | 0.000 | 0.003 | down |
| UTRM | 0.000 | 0.000 | down |
| VAPE | 0.415 | 0.715 | flat |
| VAPR | 0.030 | 0.090 | down |
| VGPR | 0.000 | 0.002 | down |
| VHUB | 0.036 | 0.066 | up |
| VPCO | 0.300 | 0.480 | down |
| VPOR | 0.000 | 0.003 | down |
| WDHR | 0.000 | 0.002 | down |
| WOGI | 0.002 | 0.007 | down |
| XTRM | 0.001 | 0.004 | down |
| XXII | 0.820 | 1.160 | flat |