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

CETV, PROW, TGRO, TSEM, ORMP, ARIA & Extended Watchlist

Central European Media Enterprises, Inc. CETV

We’ve been tracking CETV for quite some time now, having initially alerted the stock on May 10th following a routine Form-4 (Insider Trading) scan. We learned that a large block ($75M worth) of shares had just been purchased by none other than Time Warner, and took notice immediately. We observed the stock make a monster move of 147% before being subjected to a large gap-down (hit 52-week low @ 2.03) at the end of October.

We decided to re-alert the stock on November 13th, by which time it was trading as low as 2.12. Since then, it has been stair-stepping its way back up, having seen highs in the high 3.20’s last week. We’re looking for a breach of the 50 and 200DMA’s (3.48, 3.86 respectively), following which the filling of that large gap on the chart could result in further significant increases.


Progress Watch Corp. PROW

On Friday, we mentioned that we were looking for a break of a key resistance areat on PROW, the 200DMA residing in the .007’s, and the stock indeed surpassed and held above that mark into the close. After opening at .0065, PROW would see a subsequent high of .0098, an intraday run of 51% on more than 5x its 3mo. average volume.

We warned of PROW’s extremely tight share structure, which allows for significant increases on relatively small amounts of buying pressure. The stock demonstrated our point quite succinctly.


Tiger Oil & Energy, Inc. TGRO

Also appearing in Friday’s report was another of our recent favorites in TGRO, a stock which has afforded us ample opportunities in the two weeks that we’ve been tracking it. With our first alert coming exactly two weeks ago, the stock has run from a low .36, all the way up to 1.08, good for a mega-gain of 200%

For those who may have only caught Friday’s alert, there was still the chance to make up to 43% in profit from TGRO’s daily low of  .755 to the 1.08 high.


Extended Watchlist Winners

Friday’s Extended Watchlist also included a few choice picks that put up very respectable sessions to close out the week.

Tower Semiconductor Ltd. TSEM enjoyed a nice move of 26% trading in its daily range from 6.00 to 7.53.

Oramed Pharmaceuticals, Inc. ORMP spiked 36% running from 10.05 to 13.69.

ARIAD Pharmaceuticals, Inc. ARIA has been an Extended Watchlist mainstay since Nov. 12th, being as low as 2.31. Friday’s high of 7.75 represents a great run of 236% in just a little over five weeks.


Extended Watchlist:
BISU, AMRN, XRTX, CANF, CBMX, WPCS, S, AAPL(Big news with China Mobile),

PLUG, IACH, CALI, AAPL & Extended Watchlist

Plug Power, Inc. PLUG

PLUG turned in a solid session yesterday, as anticipated, following its appearance in our morning report. Initially, the stock opened at 1.04, made a 12.5% move to 1.1699, and would settle back to the 1.04 level before running up to a daily high of 1.28 for an added 23% intraday gain opportunity.

Following a strong close just a tick below the high-of-day (1.27) we’re going to be following this play once again, as the momentum could easily carry it even higher. As you can see on the chart below the next key area of resistance to watch for a break comes at the 1.45 level. We’ll need to see the stock hold support above a dollar, or it could pull back to fill the gap on the chart back to the .80-range.


Information Architects Corp. IACH

We’ve been tracking IACH via our Extended Watchlist for most of the week. The stock recently made a huge 1800% move from .001-.019, prompting us to put it on our radar,  monitoring for pullbacks and subsequent bounce opportunities, and it delivered just that.

After dipping back to .008, we saw a rebound back to .013, and a strong close at .012. Gains of up to 63% could have been achieved on the bounce.


China Auto Logistics, Inc. CALI

We also want to keep an eye on CALI, which popped up on our pre-market scan as it is gapping up heavily on the heels of a morning press release.

TIANJIN, CHINA, Dec 05, 2013 (Marketwired via COMTEX) — China Auto Logistics Inc. (the “Company” or “CALI”) (NASDAQ: CALI), a top seller in China of luxury imported automobiles, and a leading provider of auto-related services, reported today that on November 30, 2013, its subsidiary, Tianjin Binhai Shisheng Trading Group Co., Ltd. (“Shisheng”) signed an equity transfer agreement with Hezhong International Development Co, Ltd. to acquire Tianjin Zhonghe Auto Sales Service Co., the owner and operator of the Airport International Automall in Tianjin (the “Automall”). The Company plans to develop the Automall into a key site for what it believes can become one of the largest used car businesses in China.


Apple, Inc. AAPL Options

With the way AAPL has been gaining a head of steam lately, it seems plausible to imagine the stock surpassing $600 as we head into the new year. As a result, we are putting the 01/18 $585 Calls on our radar which closed at 12.25 yesterday, meaning the break-even point is 597.50. What we’re looking for, is to see the stock push past to the $610-15 level in January, which could provide triple-digit gains for the 01/18 $585 Calls.

The company finally signed a deal with China Mobile to get its iPhones on their network, as reported by the The Wall Street Journal this morning. China Mobile is comprised of over 700 million users, which obviously represents huge opportunity (in a market more than twice the population of the US) for Apple to boost foreign sales moving forward.


Extended Watchlist:
CBMX, DRYS, MTG, FREE, FCEL, EGLE, LIVE, OCZ