Blue Horseshoe Stocks: SNAP, POTN Recaps & More

Potnetwork Holdings, Inc. POTN

Last week, we touched upon the fact that the February comments from the White House pertaining to stricter enforcement of federal recreational marijuana laws appear to have walked back by Jeff Sessions. That led us to reassert our interest in closely tracking pot stocks. as the cannabis industry’s feet have been pulled from the fire, so to speak.

On Friday, we tagged POTN for the first time after noticing some recent increases in volume and price action, and it was a solid idea for the day. POTN traded in a range from .038 to .055, for chances at intraday gains of up to 45% on volume of roughly three times the monthly average. It led to a strong close, just a tick under a nickel at .049. We’ll definitely want to continue to monitor this play as we kick off a new trading week.

Snap, Inc. SNAP – Options Recap

After noticing it in a bearish pattern, then getting word of an analyst downgrade, we went with a bearish options idea for SNAP on Friday, and it worked out quite nicely for us. We had signaled the SNAP Weekly $20 Puts for possible quick-strike trade opportunities, and it was there for the taking.

Those contracts traded up from a low of .30, and reached 1.04, an intraday move amounting to 246% Cheers to anyone who was able to use that move to their advantage!

EV Energy Partners, Inc. EVEP

Both of the above-mentioned plays appeared in our reports for the first time ever on Friday, and continuing along that track, we’re going to highlight another stock this morning that we haven’t covered before.

EVEP has the look of a bottom-bouncer as you can see from the following chart snapshot. We’re going to put this one on our watchlist as a potential extended rebounder, with the RSI about to crack above the 50-line and the MACD just having underwent a bullish cross.

Extended Watchlist:
ICLD(Provided it holds support @ .03)

Blue Horseshoe Stocks: Pharma Watchlist & More

Lexicon Pharmaceuticals, Inc. LXRX

We’re taking notice of LXRX this morning in the wake of a premarket PR that has the stock trending up to its highest levels of the past three months; it contained updates on current projects as well as increased earnings. The addition of an interesting setup on the chart gives us good reason to place LXRX on watch this mid-week.

As you can see on the snapshot below, the stock gapped down significantly at the end of November. In premarket activity today we’re seeing a partial fill taking place. We’re going to be watching for LXRX to fill the remainder of the gap into the mid 1.20′s where its next area of resistance will come in at the 200DMA of 1.28.

THE WOODLANDS, Texas, March 4, 2015 /PRNewswire/ – Lexicon Pharmaceuticals, Inc. (LXRX), a biopharmaceutical company focused on developing breakthrough treatments for human disease, today updated its drug development progress and reported financial results for the three months and year ended December 31, 2014.>> VIEW PR

Pharmaceutical Watchlist

There are a number of other pharma and biopharma stocks gapping up in the premarket this morning, some of which have appeared in our reports in the past. We’ve listed them below along with links to today’s news, where applicable:

Keryx Biopharmaceuticals, Inc. KERX

Atossa Genetics, Inc. ATOS

Coronado Biosciences, Inc. CNDO

Coronado Biosciences Forms New Subsidiary, Checkpoint Therapeutics, to Develop Novel Immuno-Oncology Antibodies (Wed 8:30AM EST)

PhotoMedex, Inc. PHMD

Orexigen Therapeutics, Inc. OREX

KaloBios Pharmaceuticals, Inc. KBIO

Earnings-Related Options Ideas

American Eagle Outfitters, Inc. AEO beat expected Q4 profits and revenues, and is gapping up as a result. To take advantage of the trend, we are monitoring options trading possibilities in the AEO Weekly $15-16 Calls

Abercrombie & Fitch ANF fell short of expectations with regard to sales, which is fueling a downtrend here in the premarket, so we’ll take the opposite approach here, and keep an eye on ANF Weekly $23-24 Puts.

Extended Watchlist:

CHGS, DUSS & Extended Watchlist

China GengSheng Minerals, Inc. CHGS
After appearing on yesterday morning’s extended watchlist, CHGS came screaming out of the gate, running from .19 all the way up to .35 (+84%). The stock consolidated, and followed that initial run with two subsequent bounces, one from .24-.35 (+46%), and another from .28 to the day’s high at .39 (+39%).

A tip of the cap to anyone who was able to take advantage of some of the nearly 170% in cumulative intraday gains provided by CHGS, which can be seen on the following chart:

Dussault Apparel, Inc. DUSS
DUSS was the addition we made to the day’s watchlist in yesterday’s afternoon update. Following that alert, we saw a low of .0012, followed by a 25% run-up to the .0015 high-of-day where the stock closed.

As you can see on the annotated chart below, the next key area of resistance to watch for a break resides at .0024. A break past that point would put us in blue-sky breakout territory.

PLEASE NOTE: DUSS is a play that we selected from one of our daily scans. We were not compensated in any way to feature DUSS in our reports, however, owners of this newsletter did purchase two million (2,000,000) shares out of the open market.

Extended Watchlist:

DRRX, PPHM & Extended Watchlist

Durect Corp. DRRX

We are putting DRRX on our radar this morning; it has recently come off of a bottom, and is gaining some momentum as it begins its recovery. Prior to May, this pharmaceutical play was trading at a base level well above 1.20, before seeing a large spike followed by a sharp dropoff. If DRRX can break through resistance at the 50DMA & 200DMA there’s a chance it could come up to fill that gap on the chart. A return to previous levels from here could yield gains of up to 20%

In addition to a connection with pharma giant Pfizer, the company has also gotten FDA acceptance of a New Drug Application (NDA) as outlined in yesterday’s PR:

CUPERTINO, Calif., June 20, 2013 /PRNewswire via COMTEX/ — DURECT Corporation (Nasdaq: DRRX) today announced that the New Drug Application (NDA) for the investigational product POSIDUR (SABER-Bupivacaine) has been accepted by the U.S. Food and Drug Administration (FDA) indicating that the application is sufficiently complete to permit a substantive review. POSIDUR is a post-operative pain relief depot that utilizes DURECT’s patented SABER technology to deliver bupivacaine and is designed to provide up to three days of pain relief after surgery. DURECT submitted the NDA as a 505(b)(2) application. The Prescription Drug User Fee Act (PDUFA) goal date (the date the FDA expects to complete its review of the NDA) has been confirmed as February 12, 2014.

Peregrine Pharmaceuticals, Inc. PPHM

Speaking of pharmaceutical plays, one of the stocks that we continuously monitor is PPHM. Many of you will remember back in May when the stock provided us with some serious opportunities for profit.

Recently PPHM has been in a marked downtrend, and as you can see on the chart below, indicators seem to confirm this fact. We are going to want to put this one on bottom watch over the next several sessions, as the resulting bounce/s could be significant.

Side Note: 

Since Ben Bernanke’s recent comments regarding the Fed’s upcoming tapering of quantitative easing measures, markets have been in freefall. If no reversal occurs and that remains the overall trend, we are going to want to keep an eye on SPY Puts, VIX/VXX Calls.

Extended Watchlist:

HEMP, MJNA, CBIS, XCHC & Extended Watchlist

We’re continuing our medical marijuana coverage this morning, after the cannabis related stocks we mentioned on Friday each turned in a fine performance. We had a sizable influx of new subscribers over the weekend, so we’d like to take this opportunity to welcome all of our new friends and thank you for your support. You made a great choice when you signed up, and we will do our best to ensure that you are able to reap the rewards.

Each of the following stocks appeared on Friday’s report, and subsequently had a good session on Friday, but our coverage of these plays began way back in the fall, and in that time, have been very impressed with the results. Just look at the gains we’ve made from these cannabis stocks:

Medical Marijuana, Inc. MJNA

MJNA has traded in a range from .071 to .35 since we began following the stock, giving us the chance to rake in over 390% in profits.

Hemp, Inc. HEMP

HEMP took a mere four sessions following our original call to run from .027-.09 this fall, and more recently saw a low of .0222 (Jan. 7th) before hitting a high of .051 on Friday, for an opportunity at another 130%

Cannabis Science, Inc. CBIS

In the time since we first talked about CBIS, we’ve observed a range of .04-.099 (+148%).  Last week, CBIS was as low as .048 before hitting a high of .0749 on Friday for an added 56% in gains.

X-Change Corporation XCHC

XCHC is the newest among these to appear in our reports, and also had a killer week. It promptly gained 178% from .0521-.145 after we added it to our list of marijuana stocks last Monday.

Other stocks we’ve recently covered in this rapidly expanding field which have also made tremendous gains for us include: GRNH, ERBB, MWIP & PHOT. We’ve definitely gone over many of the most popular hemp plays on the OTC Markets, however, we’ve managed to root out a couple new ones to add to the mix. Allow us to also submit LATF and TRTC for your consideration. That brings our tracking list up to 10 stocks in one of the hottest, most cutting-edge market sectors of our time. For those of you who are indeed new to our mailing lists, you showed up during one of the most exciting periods in our more than ten years reporting on hot penny stocks.  

Extended Watchlist: