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RodDavid
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I developed analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. I primarily apply my technique to analyzing S&Ps, generating several round-turn candidates daily. The methodologies are also applied to... More
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Rod David
  • Put This In Your Pipe And Smoke It. 6 comments
    Jan 10, 2014 7:47 AM | about stocks: PHOT, EDXC, MCIG, MDBX

    This week's hottest sector might be a warning about the broader market.

    [Note: I published this article on my blog yesterday morning (Thursday) about the recent run-ups in marijuana stocks. When their topping has become obvious -- as it will -- I will begin calculating pullback targets for many of the marijuana sector's stocks. Email me at buyhigh@IfThenTiming.com to be on the distribution list for this report.]

    Thu Jan 9 2014 -- I've heard (ahem) that marijuana can heighten some people's anxiousness. Marijuana stocks should be affecting you that way right now.

    I'm not dismissing their recent performance. In fact, despite my intense hatred for so-called penny stocks, I began buying several over the past two months. And not as flyers. A subscriber asked me to review several that he had uncovered, looking for entry prices and targets.

    When this sector started catching fire last week, I began looking out for a day like today. And today has come.

    "Today" is the day that the double-digit gainers are becoming more populated with stocks that traded perhaps several hundred shares daily until this week. A couple are doubling or tripling (just checked their quotes, now only doubling again) on nothing more than a press release announcing their entries into the industry.

    Please.

    I'm not dismissing the sector, and will hold my positions and add to them on a pullback (PHOT, EDXC, MCIG -- all of which may currently be sorely in need of corrections). One of my favorite charts was MDBX on a pullback to 12 for a rally to 50 -- it hit 10, surged above 90, and now is testing 50 as support -- but I stayed away because of the founder's questionable history. My point is that the time for a pullback may be arriving now.

    And not just in the marijuana sector.

    Notice how the broader market began peaking as the marijuana sector began surging. Of course, that coincided with the January 1 legalization date in Colorado. But that date was well-known. The sector's outperformance was as much a warning that the broader market no longer offered so many opportunities.

    Now today's "press releases" are inciting doubles and triples, while some of the marijuana sector's early performers are hesitating. Even the sector is rotating out of its own leadership.

    I tend to compare the market's uplegs and downlegs to the game of Musical Chairs. The marijuana sector's sudden surging indicated that fewer chairs were available. Now surging on little more than a press release suggests that even fewer chairs remain.

    That doesn't mean the music has stopped, but it does mean we should be listening closely.

    Disclosure: I am long PHOT, EDXC, MCIG.

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Comments (6)
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  • oldorv
    , contributor
    Comments (473) | Send Message
     
    thanks for the article--I'm listening
    10 Jan 2014, 09:47 AM Reply Like
  • MordyNYC
    , contributor
    Comments (48) | Send Message
     
    I appreciate your cynicism and bravery at the same time as I'm aslo long $EDXC and $FITX after doing some research and jumping on the bandwagon (no pun intended).

     

    Please review $FITX:
    Endexx Corporation (OTC Pink: EDXC) to track and support through its M3 technology services up to 1.3 million pounds of Medical Marijuana annually for CEN Biotech, a division of Creative Edge Nutrition, Inc.(OTC Pink: FITX).

     

    I believe this is somewhat parallel to they way Russian oligarchs were able to buy the oil copmanies for cheap when the soviet union folded, i.e companies like FITX that have real retail distributions buying gov't licenses to sell new product...
    10 Jan 2014, 05:53 PM Reply Like
  • RodDavid
    , contributor
    Comments (2) | Send Message
     
    Author’s reply » FITX: Interesting. As I said in my post, I intensely hate penny stocks. I live at the opposite end of the spectrum with daytrading ES futures contracts. But I'm a technician and a chartist, so Its interesting that FITX peaked on what I call an "uptrending interim consolidation." Basically, a high gave way to a consolidation that was biased upward -- optimistic, and not exactly shaking out weak hands. That optimism was sorely missed when the high was tested, and the result was to plunge back under the interim consolidation. It's a fairly reliable setup in the ES when we see it in my Chartroom. Also somewhat reliable is that the pattern ultimately recovers. Again, I don't live among penny stocks, so its possible or even likely that this pattern does NOT recover. If this pattern were developing right now in ES, then I would be pointing out to my subscribers why it is bullish. Best of luck!
    11 Jan 2014, 11:23 PM Reply Like
  • MordyNYC
    , contributor
    Comments (48) | Send Message
     
    Thanks.
    I don't know what ES stands for nor do I look at the very technical charts.
    There's no doubt it's a gamble.

     

    Im up %250 with FITX but I'm in around $1000 as a long term gamble to riches lol.

     

    My Portfolio g/l is %40. I've been investing for a little over a year although when I found leaked bench marks of Intel's Core 2 Duo I bought $1000 worth of intc in college and made a quick $250..if only i knew about options back then and had more money lol.

     

    My portfolio gains are mostly Nokia and Cumulus where my intuition paid off buying at support levels.
    I literally bought Cumulus just because they signed my favorite talk show host.

     

    My latest is AMD already up %17.
    I also have energy stocks and silver im using to hedge against wars and inflation.
    12 Jan 2014, 01:04 AM Reply Like
  • Trevor Fontaine
    , contributor
    Comments (12) | Send Message
     
    FITX is the only marijuana stock I would consider buying right now (until Tweed Inc goes public). I live in Canada and they want companies like FITX to grow as much marijuana as they can.

     

    FITX has a factory that will be equipped to grow 1.3 Million pounds every year LEGALLY (and I'm sure they'll come close to maxing out that number)... With a Market Cap of only $30 Million, I'm buying with every spare dollar I can scratch up... If my math skills are correct, this will be a multi billion dollar company within a year of solid earnings reports.
    30 Jan 2014, 10:53 AM Reply Like
  • RodDavid
    , contributor
    Comments (2) | Send Message
     
    Author’s reply » Thank you for posting. Someone else above had mentioned FITX about 3 weeks ago. I reviewed its chart then, and located a breakout that would be triggered above 2.75 cents. The reaction above it was a little delayed, but soon substantial -- probing above 6 cents. At this stage, holding 5 cents as support may make the difference between extending the rally, or else settling down into a lengthy correction/consolidation.

     

    I'm taking at face value the sustainability of their business. I own EDXC, which I can also only assume to be legitimate, and notice it is partnered with them. It wasn't too long after EDXC began its most recent upleg that FITX followed, and I'm assuming they'll move more in tandem with each other next time -- whether that is up or down.
    31 Jan 2014, 08:27 AM Reply Like
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