Blue Horseshoe Stocks: Cannabis Commentary & More

NeoPhotonics Corp. NPTN

We’re always bargain hunting for stocks that have been recently beaten back to what appear to be unsustainably low levels, and we’re observing one heck of a double bottom setup on NPTN at the present time.

Twice now the stock has touched and rebounded off of the mid-$4 range, with the annual low coming in at 4.56. We’re going to want to place NPTN on watch in sessions to come and look for the stock to establish higher levels of support.



Valeant Pharmaceuticals International, Inc. VRX

It’s been awhile since we had a look at VRX, and as it turns out, this is another stock that looks ready to start a trend off of a recent relative low.

VRX is gapping up considerably into the $14-range this morning on the heels of a solid earnings beat. We’re going to signal a range of options contracts to watch for some possible dip-and-rip activity. This is just the type of setup we routinely look for, and we’ll be tracking the VRX Weekly $13-14 Calls for the remainder of the week.



Cannabis Commentary

It has been a slow year in general for many domestic cannabis stocks, due, at least in part, to a DOJ led by outspoken marijuana opponent Jeff Sessions. It has created an environment of uncertainty pertaining to the federal government’s likelihood of creating problems for marijuana businesses, even in states where voters have officially spoken and legalized the plant. The marijuana movement is here to stay, but at present, is dealing with this roadblock of sorts.

That doesn’t mean our interest in the sector has diminished. In fact, we’re as exuberant about the future of the cannabis industry as we ever were. North of the Border, Canadians will enact a nationwide end to prohibition just 8 months from now.

The World Anti-Doping Agency, which was formed by the International Olympic Committee to police the use of performance enhancing drugs in athletics, also recently removed Cannabidiol (CBD) from its list of banned substances, opening up a huge market for the hemp-derived product.

Here are just a few of the cannabis plays that we track on a regular basis, and will continue to do so as we head into 2018, which we feel is going to be a big year for the industry and all of its subsectors. Maybe the biggest one yet!

MJNA, TRTC, MJTK, AGTK, GRNH, HEMP, ACBFF, APHQF,  TWMJF, CBIS, XXII,


Extended Watchlist:
TXMD, EVEP, DXTR, COLL, CRC

Incoming search terms:

  • vh-vrx

Blue Horseshoe Stocks: INMG Recap & More

Innovativ Media Group, Inc. INMG

On Wednesday, just a day following news that the company had acquired a property in the cannabis space, INMG impressed by running 195% from .0019 to .0056. Participants in our daily live trader’s chat had a chance to get in on those gains, as we were mentioning in Thursday’s premarket report.*

But the party was only just getting started, and Thursday’s session proved to be every bit as exhilarating. INMG traded up from its morning low of .005, and managed to crack through the penny barrier to reach a high of .012 on the day. That was good for another multi-bag intraday move of 140% and extended our total two-session observed range on INMG to a walloping 532%

The move came on more than nine times the 30-day average volume, and the stock held a penny into the close, maintaining well over half of its daily advance, so we’ll be very interested to see how that head of steam transfers to this new trading week after a three-day weekend.

*We encourage all of our readers to join in on our daily in-session live chats. To participate, simply create/sign into your Skype account and send a contact request to ‘stocksumo’.


4/20 Cannabis Watchlist

We’re heading into 4/20 week, with the holiday coming up on Thursday. For the uninitiated, 4/20 (“Four-Twenty”) has been a marijuana counter-culture holiday for decades, and in recent years as the legal cannabis space has really taken off, it has been taken to a new level through viral marketing events, festivals, celebrations, and targeted ad campaigns.

We would expect the frequency of press releases (and with them, increased visibility) from companies operating in or around the space to rise over the course of this week. We would also expect subsequent heightened activity in many cannabis stocks. 

In accordance with these expectations, we’ll put the many cannabis stocks we track on a routine basis on even closer watch. Stocks like CBIS, OWCP, RMHB, SGDH, TRTC, and more, will be high on our watchlist this week.


Extended Watchlist:
GIGL, GSAT, HTGM, BLPH, ADPT, NVCR, SPU

Incoming search terms:

  • cbis stock prediction

Blue Horseshoe Stocks: JNUG Recap & Much More

Direxion Daily Jr Gld Mnrs Bull 3X ETF  (JNUG) – Recap

Despite only providing a fleeting opportunity for gains on Tuesday morning after we submitted our options trading idea for the JNUG chain, we followed up with a reminder in yesterday’s report that the idea was still in play, and that we’d need to keep our heads on a swivel looking out for the move we were hoping for.

With the help of a Fed rate hike of a quarter of a percentage point, announced by Chairperson Janet Yellen yesterday, our specified contracts, the JNUG 03/31 $7-8 Calls took a serious turn for the better.

The daily ranges and potential profits were as follows:

$7 Calls – Range: .40-1.40 – Max Gain: 250%
$7.50 Calls – Range: .35-1.00 – Max Gain: 186%
$8 Calls – Range: .20-.87 – Max Gain: 335%

Once again, we’re going to reiterate our interest in these ideas, which could be in line to extend their highs, with JNUG gapping up in early trading this morning.


Aralez Pharmaceuticals, Inc. ARLZ

We placed ARLZ on bottom watch yesterday morning in what turned out to be a fantastic stroke of good timing. We just wanted to update readers this morning on the reversal which did indeed occur during the session. While the intraday gain potential topped out at 25% as the stock ran from the open (and also low of day) at 2.11 to as much as 2.63.

The inverted hammer candle that the stock posted yesterday is often thought to be an indicator of the end of a downward pattern, so we’ll be very interested to continue tracking ARLZ in sessions to come. Chart indicators are still looking very ripe, and we’d be surprised if the show was over after just a 25% rise.


Cannabis Sector Comments

Lastly, we just want to address the cannabis sector, particularly those stocks that are connected to legal recreational marijuana. After some very damaging comments made recently by the Trump Administration wherein it was suggested that the government could crack down on legal weed, yesterday we witnessed something of a reversal from Jeff Sessions.

Sessions appeared to hint at insufficient DOJ funding as a primary reason that perhaps the current regime will not be changing Obama-era guidance on leaving the treatment of recreational weed as a states’ rights issue.

On the heels of this development, we’re going to want to keep closer tabs on the cannabis sector once again, particularly those plays that lost a lot of ground after the first round of comments from Washington.

Some of our go-to favorites in the space have been OWCP, TRTC, SING, SGDH, CBIS, and MJNA, so we’ll be tracking these more closely in the days and weeks ahead, along with the sector as a whole, as stated above.


Fresh Options Idea:

The TSLA chart is looking ripe for a recovery, and the stock is gapping up moderately in premarket trading this morning. We want to signal a range of calls to monitor in the TSLA chain to potentially take advantage of what could be a protracted recovery. We’re going to zero in on the TSLA 04/07 $270-277.50 Calls, and monitor them in the days and weeks ahead.


Extended Watchlist:
NAK, ZSAN, ORCL, TPLM, PLX, RXII, IDRA

Blue Horseshoe Stocks: Marijuana Madness Continues & More

Puration, Inc. PURA

It seems that the majority of the stocks we’ve seen make big moves in 2017 so far, are in some way related to the marijuana sector. To start things off this morning we want to go back and retrace our steps with PURA, which began on Thursday the 12th.

We saw a nice initial 30% jump, followed by a consolidation down to .03 on  Tuesday, and for the rest of last week it was one bullish session after the other. The impressive run culminated in a new high of .075 on Friday, which stands as an intraweek upswing of 150%

With such good price action and volatility, we’ll be sure to leave PURA on our massive running watchlist that essentially includes all high-liquidity stocks in, or related to, the cannabis space.


Rocky Mountain High Brands, Inc. RMHB

Speaking of cannabis related, RMHB was new to our reports on Friday, and it too is trying to capture a chunk of the consumables market with its hemp-infused food and beverage products.

The stock put up a solid move in its first session on our radar, making an early run from .092 to a high of .137. That works out to a 49% intraday pop, and any play posting those types of single-session numbers could certainly have more in store for us, so we’ll keep RMHB on our watchlist as well.


VanEck Vectors Gold Miners ETF (GDX) – Options Idea

The dollar has been looking shaky of late, as the various unknowns of a new administration has characteristically injected an element of fear into the marketplace. As a result gold has been on a month-long climb, and in the event that trend continues to carry, we’ll want to have an associated options idea at the ready.

One of the funds we like to trade for its correlation with gold is GDX, and in this instance, we’re going to put the GDX 02/10 $24-25.50 Calls on watch over the next several sessions.



Extended Watchlist
CBIS, MCOA, HEMP, MYHI, OWCP, TRTC, USMJ,

Blue Horseshoe Stocks: NVDA Review & More

Nvidia Corp. NVDA – Recap
-
Focusing on NVDA Friday morning on the heels of its earnings beat turned out to be a fantastic idea. It was a great way to cap off a week filled with solid options trading ideas.

The stock itself made an incredible intraday run of nearly 30% and as a result, our specific area of interest, the NVDA Weekly $77-80 Calls, yielded some great chances for huge single-session profits. That included nothing less than 201% and one that even went for a ten bagger!

The potential gains were as follows:

$77 Calls– Range: 2.87-11.55 – Max Gain: 302%
$77.50 Calls – Range: 3.62-10.90 – Max Gain: 201%
$78 Calls – Range: 2.00-10.55 – Max Gain: 427%
$78.50 Calls – Range: 1.33-8.70 – Max Gain: 554%
$79 Calls – Range: 2.04-9.55 – Max Gain: 368%
$79.50 Calls – Range: .81-5.00 – Max Gain: 517%
$80 Calls – Range: .70-8.15 – Max Gain: 1064%

Congrats are due to any of our readers who used our hunch to help bank a piece of these serious profits!
_____

Fresh Options Idea:
HAR Weekly $100-110 Calls


Cannabis Sector – Video Update

We also want to provide an update on cannabis stocks, which we promised to continue following on the heels of legalization happening in three states last week. We’ve done so in the form of a quick video review of some of the more high profile plays, like MJNA, CBIS, PHOT, GRNH, and NEWC.

After a pullback around election time, pot stocks in general began to gain steam again at the end of the week. We’ll be watching carefully for the recording of higher lows and higher highs across the board.

  Click the graphic below to view the presentation:


Primero Mining Corp. PPP

We also want to take heed of a bottom-watch play we’ve identified this morning. PPP reached new 52-week lows on Friday, after a disappointing earnings release earlier in the week sent the stock into a tailspin.

We’re always looking for bargains, and to find one in a gold play in the midst of a solid run-up for the precious metal, has the potential to be especially fortuitous. As a quick glance on the chart below will show, the stock is presently heavily oversold and searching for an ultimate low here. We’ll want to be ready to strike when the reversal occurs.


Extended Watchlist:
VAPE, HEMP, OWCP, MYDX, SINO, CRNT, DRYS, X

Incoming search terms:

  • cbis stock prediction for 2017