Blue Horseshoe: Pot Stocks Update & More

Pot Stocks Update

Even as we’ve had other things occupying our main focus, we’ve stated continuously that traders should keep the cannabis sector on close watch. Following the complete hysteria over the industry which reached its peak shortly after we rung in the new year, we’ve seen just what we expected; consolidations leading to bounces that in many cases have been good for gains approaching those achieved by the New Year’s rush. So let’s take a look at some of the more notable performers from our long-standing watchlist. These represent just a few of the opportunities that marijuana related stocks have continued to bring us. We are not done with this sector by any means, and feel strongly that it will yield more and more gains as time goes on.

ENDEXX Corp. EDXC

We’ve had EDXC on our radar for a very long time, and it is one that didn’t lose much ground at all after pulling back off of its initial surge. Beginning at less than seven cents, 2014 has seen the stock continue to bull its way upward, touching .235 yesterday. It’s certainly a far cry from when we first came upon the stock last year, back when it was trading at roughly .015.

Cannabis Science, Inc. CBIS

CBIS has made quite an impressive bounce after consolidating off of its big run, finding support at .075; from there, it launched itself back upward for a sizable move to yesterday’s high of .1255. That marks a three-session move of 67%

Creative Edge Nutrition, Inc. FITX

The last time we looked in on FITX was on January 14th, at which time the stock was searching for support, and found it at .0174 the following day. It didn’t take long for the stock to produce yet another huge run, touching .045 during yesterday’s session. It broke above an area of previous resistance at .031, so on the next downswing, we’ll be looking for FITX to hold that level as support.

We’ve already pointed out how powerful a signal the Golden Cross can be, and FITX is yet another prime example of this. That’s why we’ve been keeping such a keen eye on our next play, because it too has a Golden Cross in the making.


Resource Ventures, Inc. REVI

REVI held its ground very well yesterday, after our bounce-call on Tuesday took it from .0074-.0105. It registered a higher low at .0085, and managed to close out the day in the green at .009. We’d like to see REVI continue to hold support in the .0075-.0085 as it works toward its Golden Cross, which if the current trend holds, could potentially occur within the next week or two.



ARIAD Pharmaceuticals, Inc. ARIA & Hemishperix BioPharma, Inc. HEB

We’ve been tracking both of these pharma plays for awhile, which are worthy of mentioning this morning:

ARIA

We mentioned ARIA back in October when it was trading around its 52-week low at 2.15. In Mid-December, it began a run which yesterday resulted in a high of 6.75. This morning the stock is gapping up into the 7.30-range.

ARIA has been the subject of potential buyout rumors originating in the UK, with names like GlaxxoSmithKline being tossed around. While this remains speculation at this time, the ramifications of a buyout would be huge, so this is a story we’ll continue to follow.

HEB

In the case of HEB, we’ve tracked this play since December, where it found a bottom in the low .20’s, and has performed exceptionally well into the new year. Yesterday the stock hit a high of .4978.


Extended Watchlist:
PSTI, INO, CVM, CBMX

HNR, CETV & Extended Watchlist

Harvest Natural Resources, Inc. HNR

HNR set off our scanner this morning as this energy stock appears to be gapping up heavily in pre-market trading. Harvest announced this morning that it had entered into negotiations to sell the company’s Venezuelan assets, and spin off its remaining assets into a new company, a move that the CEO believes the proposed sale “affords the Company and its shareholders the ability to reap the benefits of our exceptional portfolio in the near term.” We’ll certainly be watching, as HNR is currently up 35% (a/o 8:30am).

In addition to this morning’s press release (below), the company will be holding a conference call tomorrow for anyone interested in learning more about the proposed transaction and its ramifications. To access the conference call, dial 800-344-6698 or 785-830-7979, five to ten minutes prior to the start time. At that time you will be asked to provide the conference number, which is 3073565. A recording of the conference call will also be available for replay at 719-457-0820, passcode 3073565 through September 17, 2013.

HOUSTON, Sept. 11, 2013 /PRNewswire via COMTEX/ — Harvest Natural Resources, Inc. (NYSE: HNR) today announced it has entered into exclusive negotiations with Pluspetrol Venezuela S.A., an entity belonging to one of the leading exploration and production companies in Latin America, to sell the outstanding shares of Harvest. >>> FULL REPORT


CEM Enterprises  CETV

We first called CETV on May 10th after it popped up on our Form-4 scan. At the time it was trading at 2.67, and in the roughly four months since that time, it has yet to dip below that price.

We are placing it back on watch for further gains as it is approaching its recent high of 4.85 (reached at the end of August), which represented a gain of 82% from our bottom. We’re interested to see if the stock can now break past that previous swing high for added gains. Conditions on the chart suggest this as a possibility, as you can see, the RSI is rumbling toward the powerzone, we have a potential Golden Cross of the 50 & 200DMA currently setting up.


Extended Watchlist:
AQUM, VTUS, PSTI, DVAX

IWDM, KMAG & Extended Watchlist

ioWorldMedia, Inc. IWDM

IWDM first appeared in our newsletter on July 19th, shortly after it had hit its 52-wk low. For about a month following, the stock lingered at around .015-.0219, giving everyone ample opportunity to accumulate cheap shares. Last week, the stock had pushed as high as .06, making gains of up to 300% possible since the time of our first alert.

After hitting that six-cent high, the stock experienced a couple days of consolidation, until yesterday, when it began to move up once again.

Currently, BARCHART.com rates IWDM as a “Strong Buy”

Technically speaking the chart is looking sound. We have a golden cross of the 20DMA superseding the 100DMA, as accumulation and distribution has been on a steady increase this month. The RSI has also been hovering around the powerzone.

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KMA Global Solutions International, Inc. KMAG

Speaking of golden crosses, KMAG, an old-time favorite, is experiencing one currently, with the 50DMA surpassing the 100DMA. Accum/Dist. has been rising steadily, the RSI recently held support off of the 50DMA, and the PPO is pinching, showing a hint of covergence. The Slow STO recently crossed over, passing the 50DMA, and is heading up to the powerzone.

We started putting KMAG back on our radar at .0075 on August 3rd, and by the 13th, it hit a price of .019, for a tidy 153% gain. Key levels of resistance will come at August’s high of .019, and .0231 (previous high hit in April)

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Extended Watchlist:
AAPT, BBDA, ENTB, OTHM, PSTI, NOK, HEK