The Universe, week of March 28, 2016… One out of four!
[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.]
Two months ago I began pointing out the improvement among percentage of stocks rising above their 4-week moving averages. This was enhanced by my anecdotal count of stock no longer down, but flat. And the future looked bright.
In fact, percentages continued improving, from single-digits to double-digits, consistently week after week after week.
That improvement has persisted, and the rate shouldn’t be surprising considering its recent history. Nevertheless, even I would have had difficulty agreeing two months ago that today one-fourth of our universe is trading in uptrends. That’s right, 24%. As surprisingly and as relevant is that’s equal to the percentage of stocks in downtrends, and not far fewer as has been more usual.
Much, much more important is the stocks that are extending beyond their first surges. Growing legs, as it were. Stocks like CANV, TRTC, and CBDS, which already had perfectly respectable rallies but have no extended. Or stocks like CBIS, which has tamed an overly-optimistic surge to form an accumulation pattern poised to break higher. Stocks like SRNA which pushed under key support recently, but even more recently have pushed back up above relevant resistance.
If you own a cannabis stock that has been probing lower and lower lows into this week, there’s something wrong with it. Something seriously wrong. Especially if the company is touting a positive story which price continues to erode.
There’s another side, too. Recall the 71-area buy zone I described after GWPH‘s double last week on results of its clinical trials. The reaction down got there quickly, which I noted here last week, before the week began by shooting straight back up to test 87. Good for it. But what of two other relatively liquid issues like INSY and CARA? I’d still like CARA to retest its lows, but INSY should be attracting buyers soon if not already.
A very late surge in the very illiquid XTRA makes me very interested in any initial strength Monday. Recent boiling beneath the surface in AMMJ suggest that its time may be coming. There were very few other new stocks of interest this week. Perhaps the sector is preparing to correct. I’m just impressed that it has an uptrend it can correct, now approaching the sector top’s two-year anniversary.
| Marijuana Stock Universe for March 28, 2016 | |||
| Reference this table during stock reactions | |||
| 4-week | # up: | 24 | 30.38% |
| trends* | # flat: | 30 | 37.97% |
| # down: | 25 | 31.65% | |
| *The percentages of stocks rising or falling over 4 weeks. | |||
| symbol | support | resistance | 4-week trend |
| AERO | 1.600 | 2.270 | up |
| AGTK | 0.004 | 0.007 | down |
| AMMJ | 0.085 | 0.160 | flat |
| ARNA | 1.520 | 1.970 | flat |
| ATTBF | 0.035 | 0.075 | flat |
| BLOZF | 0.160 | 0.220 | up |
| BLPG | 0.015 | 0.030 | flat |
| BRDT | 0.012 | 0.031 | flat |
| BTFL | 0.000 | 0.005 | down |
| CAFS | 0.001 | 0.004 | down |
| CANL | 0.053 | 0.290 | flat |
| CANN | 0.350 | 0.550 | down |
| CANV | 0.290 | 0.550 | up |
| CARA | 2.750 | 5.900 | down |
| CBDS | 3.000 | 5.200 | up |
| CBIS | 0.017 | 0.024 | up |
| CGRW | 0.580 | 0.820 | up |
| CHUM | n/a | n/a | down |
| CNAB | 0.490 | 0.760 | up |
| DEWM | 0.004 | 0.006 | up |
| DIGP | 0.120 | 0.220 | down |
| EAPH | 0.004 | 0.009 | up |
| EDXC | 0.017 | 0.032 | up |
| ENCC | n/a | n/a | flat |
| ENDO | 0.012 | 0.012 | up |
| ENRT | 0.005 | 0.014 | flat |
| ERBB | 0.001 | 0.003 | flat |
| ETST | n/a | n/a | flat |
| EXMT | 0.000 | 0.004 | up |
| FITX | 0.001 | 0.004 | down |
| FULL | 2.400 | 2.800 | up |
| GBLX | 0.175 | 0.280 | flat |
| GRNH | 0.029 | 0.047 | flat |
| GWPH | 71.500 | 87.000 | up |
| HEMP | 0.036 | 0.070 | up |
| IMLFF | 0.040 | 0.115 | down |
| INQD | n/a | n/a | flat |
| INSY | 14.950 | 21.250 | down |
| ITNS | 0.001 | 0.005 | flat |
| KAYS | 0.067 | 0.187 | down |
| LXRP | 0.100 | 0.220 | flat |
| MCIG | 0.029 | 0.052 | up |
| MDBX | 0.006 | 0.051 | down |
| MDRM | 0.040 | 0.108 | up |
| MINE | 0.019 | 0.040 | down |
| MJMJ | 0.000 | 0.001 | flat |
| MJNA | 0.028 | 0.044 | down |
| MNTR | 0.540 | 1.100 | up |
| MSRT | 0.830 | 1.410 | up |
| MYEC | 0.000 | 1.000 | down |
| MYHI | 0.013 | 0.100 | up |
| NMUS | 0.450 | 1.070 | flat |
| NTRR | 1.120 | 1.800 | flat |
| OGRMF | 0.435 | 0.630 | flat |
| OXIS | 0.200 | 1.640 | down |
| PHOT | 0.020 | 0.040 | flat |
| PLPL | 0.063 | 0.108 | flat |
| PMCB | 0.043 | 0.074 | down |
| PNTV | 0.002 | 0.004 | up |
| PZOO | 0.000 | 0.002 | down |
| RMHB | 0.028 | 0.051 | flat |
| RSSFF | 0.030 | 0.100 | down |
| SING | 0.006 | 0.014 | flat |
| SPRWF | 0.225 | 0.375 | up |
| SRNA | 0.074 | 0.112 | flat |
| STEV | 0.015 | 0.037 | down |
| TAUG | 0.001 | 0.004 | flat |
| TRTC | 0.250 | 0.351 | up |
| TURV | 0.463 | 0.770 | flat |
| TWMJF | 1.800 | 2.400 | flat |
| UPOT | 0.010 | 0.050 | down |
| VAPE | 0.003 | 0.023 | flat |
| VAPR | 0.000 | 0.020 | down |
| VGPR | 0.000 | 0.002 | down |
| VHUB | 0.025 | 0.048 | up |
| VPCO | 0.000 | 0.095 | down |
| WOGI | 0.001 | 0.004 | flat |
| XTRM | 0.001 | 0.004 | flat |
| XXII | 0.690 | 1.005 | down |