Tag: GALE

Blue Horseshoe Stocks: New Options Idea & More

Vivint Solar, Inc. VSLR – Options Idea

VSLR caught our eye yesterday as the stock made considerable progress in coming off of a recent bottom, aided by Q4 financials announced Wednesday, post-market which came in better-than-expected.

In the midst of this rebound, we’ll be looking to possibly take advantage via the options chain. Currently, we’re interested in following the activity on the April 17th $11 Calls (Last Trade:1.30).

VSLR has a 1-year analyst estimated price target of 19.80, and is presently trading well below that range, thus it could turn out to be a stock that we continue to track over an extended period of time.

AVEO Pharmaceuticals, Inc. AVEO

We’re watching AVEO this morning; the stock broke above its 200DMA earlier this week and has been holding support above that level. Yesterday it underwent a gap-and-fade, ultimately finding support at 1.36. and that’s the level we’ll want to see it maintain on any further pullbacks today.

The main thing drawing our attention toward AVEO is the current chart setup.As you can see on the snapshot below, it is showing a strong RSI, a bullish MACD, and appears to be building toward an elusive Golden Cross; a relatively rare event for which we’re always keeping our eyes peeled.

Extended Watchlist:
ASTI, JDST, CRMD, MSO, AXN, GALE

Blue Horseshoe Stocks: Cannabis Stock Resurgence

Marijuana Stocks Making a Comeback

The biggest standout of yesterday’s session was the unmistakable resurgence of the cannabis sector. Many of you will recall that we have tracked this sector throughout the year, and indeed, dating much further back than that. The gains we’ve seen from this market in 2014 have been nothing short of historical. Over the past few months, however, we had been witnessing a huge beatback sector-wide, with pot plays steadily declining across the board.

You can see below from the random chart examples we’ve pulled, that similar action has been occuring in most every related stock. Familiar plays like HEMP, TRTC, and GRNH all exhibit strikingly similar paths. Steady, heavy losses followed by distinct signs of a turnaround.

Presumably the pickup we’re seeing as we head into the end into week’s end is due at least in part to campaign season kicking off for proponents of cannabis in places like Alaska, Florida, Oregon and Washington, D.C, who will all be voting on marijuana initiatives in some form or other on November 4th.

Other states are sure to be paying attention, especially those that are tight on cash. Colorado estimates that tax revenues from its first year of recreational sales stand at $60-70M. Meanwhile, Washington State’s measure roll-out of retail sales continues slowly, with only the second Seattle marijuana outlet scheduled to open up next Tuesday.  In a study conducted by NerdWallet.com, the nationwide legalization of pot would produce over $3B annually.

So here we are, having waited patiently for the marijuana space to begin to heat up again, finally seeing the kind of rebound activity that can provide us with quick in-and-out gains. We’re going to want to watch anything even remotely tied to the industry as voting time draws even closer.

Extended Watchlist:
RPRX, CNET, NAVB, DRYS, GALE

Bllue Horseshoe Stocks: JCP, RNBI & More

JC Penney Co., Inc. JCP

To kick off the week, we placed JCP on watch via Monday’s Extended Watchlist, so let’s finish things off by taking a look at what happened this week. We saw a consolidation down to 8.18 before the earnings release hit the wires yesterday, after which time the stock began to soar.

Already in pre-market trading today the stock has bounced back to hit a high of 10.15, so we’ll be anxious to see what can happen if the stock can break past this mark which also coincides with a recent swing high in November/December.

The 8-K filed contained both increased quarterly figures as well as guidance for 2014, and things seem to be headed in a positive direction overall, so we’ll continue to monitor JCP over the foreseeable future.

Rainbow International Corp. RNBI

Noticing a sizable increase in volume in RNBI during a routine scan on Wednesday prompted us to put it on yesterday morning’s watchlist, and it turned out to be a beneficial decision. We would see the stock spike from a low of .18 running to .24, giving traders a chance to bank up to 33% intraday.

A stock that was trading by appointment only prior to its big rise in volume this week, gaining this much ground on the chart demands the highest level of caution for those who’ve yet to exit their position.

Added Side Note:

We just want to take a minute to address a cautionary statement by influential hedge fund manager David Tepper yesterday, regarding his overall sentiments toward current market conditions. His warning to traders to avoid going too long at the moment, sent ripples through the investment community, and the overall markets saw a pullback (leading to a spike in the VIX/VXX).

Occurrences such as this can be used to profit no matter which way things go; depending on how the public reaction is going to play out, we will be looking to adjust our strategy by trading options on either the SPY, in the event that things turn back to the bullish side rather quickly, or the VIX, should we see a sustained downturn.

Extended Watchlist:
ZBB, DCIN, KGJI, OVRL, GALE, MSTX, CSTI