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:
INNL, AXTI, FCEL, KERX, XTNT, MDCO,
ICLD(Provided it holds support @ .03)

Blue Horseshoe Stocks: MDCO Options Recap & More

The Medicines Co. MDCO

We were spot on in terms of the options ideas we offered up in yesterday’s premarket report.
After taking a look at the premarket activity being driven by some untraded-upon press, we targeted the MDCO Weekly $38-41 Calls. We specified that we’d be on the lookout for a dip-and-rip scenario to give rise to chances in that range, and it turned out quite well.

Here’s a look at the possibilities for big gains that traders were afforded with those contracts: 

$38 Calls  – Daily Range: 2.30-3.50 – Max Gain: 52%
$39 Calls  – Daily Range: 1.75-2.55 – Max Gain: 46%
$40 Calls  – Daily Range: 1.05-2.40 – Max Gain: 129%
$41 Calls  – Daily Range: .80-1.75 – Max Gain: 119%


Other Notable Gainers

A couple of the stocks we’ve had on bottom-watch which we mentioned in yesterday’s report had modest yet notable sessions to kick off the week, and we’ll continue to monitor for signs of continued recovery in both instances. 

Bon-Ton Stores, Inc. BONT - We’ve been on BONT’s trail for a couple of weeks, and yesterday the stock made a slight jump from 3.60-4.07 for an intraday move of 13% and held the majority of those gains into the close.

SFE Entertainment, Inc. SFXE – SFXE also made a nice move from a low of .91 up to 1.04, a 14% jump, and it too held the majority of its ground, closing above a dollar.


VelocityShares 3X Long Crude Oil ETN (UWTI)

We’re seeing some bullish patterns on the UWTI chart that we felt were worth pointing out. As you can plainly see on the annotated snapshot below, this particular note has traded record volume en route to logging four consecutive sessions of higher highs and higherl ows off of its recently established 52-week low.

We’ll be on the lookout for the possibility of further advances provided that Crude Oil futures can see a sustained uptrend over recent lows.


Blue Horseshoe Stocks: Bottom-Play Roundup & More

Last Week’s Bottom-Bouncers

We were tracking a couple of stocks and an ETF that we put on bottom-watch heading into the end of last week, and are happy to report that we’ve seen the beginnings of some nice rebounds on those fronts.

Direxion Daily Nat Gas Bull 3X ETF (GASL)
It started with the triple-leveraged natural gas bull fund, GASL, which we caught coming off of its 52-week lows and entered into the conversation on Thursday. At the time we would witness a PPS low of 4.88, and after a nice initial run that day, GASL would go on to register a high of 6.98 on Friday. That marked a timely call on our behalf which opened the door for overnight profits of up to 43%

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LINN Energy, LLC (LINE) & Linn Co, LLC (LNCO)

We tagged this linked pair on Friday, noting that one is a publicly-traded wholly-owned sub of the other, and that the chart patterns were virtually identical. Traders could have latched on to either, and witnessed the reversal we called for on the charts.

The move for the parent, LINE, was recorded as a run from 2.73-3.83, a 40% intraday swing. The subsidiary, LNCO, ran 34% from 2.46 to 3.29. Both very respectable single-session moves.
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We’ll continue to monitor all three of these plays for the possibility of continued uptrends as we kick things off this week. We’ll look for each one to register higher lows, building a higher base of support than we witnessed on Friday.


Pazoo, Inc. PZOO – Update

We re-tagged PZOO on Friday, pointing out the recovery that had been transpiring on the chart, and we were granted another nice opportunity by the stock. We watched as it ran from a daily low of .0059 and went as high as .0073

In the video chart we drew up for PZOO in that report we mentioned we wanted to see a break of the 50DMA (.0061) and we’ll look for the stock to maintain support at or above that level on any pullbacks. The next area of key resistance crops up at the 200DMA of .011.

The company had a conference call last week (>>>Read Transcript or >>>Listen to Call) which went over a vast array of important topics. We suggest taking the time to go over that; highlights included financial and share structure data, as well as information regarding all branches of the company’s rapidly expanding marijuana testing business.


The Medicines Co. MDCO

Setting off our abnormal volume scanner this morning was MDCO, which looks ready to fly with un-traded upon news regarding a cholesterol study hitting the wires on Sunday. The stock is up considerably in the premarket, so we’re going to formulate a potential quick-hitting options idea for intraday/intraweek flip opportunities- We’ll be looking for the possibility of dip-and-rips in the range of MDCO Weekly $38-41 Calls.


Extended Watchlist:
SIRG (Subpenny Momentum Play)
BONT, SFXE, GBSN (Bottom-Watch)