More Low Lying Fruit?

 I wanted to put out a bonus report on Tuesday morning. Realistically we probably have enough on our plate, so if you are happy with your current positions, please just view this as a possible heads up for possible future trade set ups or a watch list going forward.  In the past few months we have been trading Energy, industrial Metals like CLF, VALE, WRN, NAK, X, etc. We have been trading in the Precious metals sector ( I also encouraged readers to buy & just hold on to some positions from the December lows forward ).

 You may also recall my special report in December on another sector that turned very bullish. We will discuss that a bit further here today, as well as what could be some more low lying fruit in another sector that may be sending out some bullish shoots.  These are just extra trade ideas for the active traders. Let’s take a look…

 Today we will be discussing 2 bullish looking sectors  –

1.  Medicinal Marijuana companies or contributors to that industry

2. Solar stocks  ( Thanks to LeChiffe for pointing out a couple of interesting solar stocks in fridays comments.  That is what got me looking at the sector again).

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Medical Marijuana

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 If you go back to the end of last Fridays report, I mentioned a few companies in the Medical Marijuana sector that were setting up bullishly, so let me start there.  If you need to read that report again to refresh your mind on the subject, including all of the warnings that should be made known and a link to my Dec report on this subject, please do so at this clickable Picture link.

I recommend being reasonable in this sector , since business here may be somewhat unpredictable.  That having been said, since I wrote my Dec report, many of the stocks have actually doubled , tripled, or more, but many are also penny stocks. They are still higher risk, so please keep positions reasonable if you decide to take a trade.  I also said last week that I recently bought CNAB , because I thought that THE CHART SET UP  was similar to CNBX ( which has blasted off higher, like many before it).  I’m looking for charts with huge runs higher in November, and then a pullback and a base building process, so let’s take a look…

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CNBX from my Dec report.  Huge run up in November, drop into a base building process.

CNBX –  You can in Thursdays chart the long base and the gradual breaks higher where suddenly it is overwhelmed with buying (and maybe short covering?) . It hit $4.41 the next day! This just ran from 75 cents to $4.41 in 1/2 a month! Crazy.

Now compare that chart above with this CNAB chart from Thursday.  I bought CNAB STRICTLY on a bullish chart set up and a little research on the company. Here it was $1.66.

This is CNBX – After Popping a few times above the base (blue arrows), it just took off to new highs

Compare to CNAB now at $2.06, and I think the patterns are similar, but this base is not as long. Popping a few times above the base and now moving higher.  NO GUARANTEES, this base could still be building, but so far, so good.

In last Friday mornings report, I mentioned 2 companies that I thought were going to be set ups ready to perform well –  NWGFF and GBLX.  This is based simply on the chart set up  (And I did a little research on the companies too).   On Friday they both went up 7%, so let’s take a look.

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NWGFF – From Friday mornings report, this is a rounding base climbing higher.

NWGFF NOW – It popped higher Friday.

NWGFF – The Big Picture

GBLX – From Fridays report, I was expecting a break out and it was quite oversold, so I bought it.

GBLX – As of Fridays close, we got the break out. These could still be considered a low risk entry, especially if it has a chance of running from $0.39 to former highs at $0.65 or more.

MCOA – This is one that I bought in December and when it ran up over 100%, I sold it ( roughly 4 cents to 10 cents).  It pulled back and is now almost right back to where I sold it.  I still like this set up, it is similar to what I pointed out in CNBX & CNAB in my humble opinion.

BUDZ –  This is one that I never covered before.  It has been V-E-R-Y strong after moving out of that first base and the second base, so I just wanted to point it out .  Can you say  7 cents to $5.00 in 4 months?

So that is a sector that is responding to the recent vote to legalize medical marijuana in multiple states  ( And recreational legalization has grown too.  This legalization recreationally may or may not continue, but medicinally it is being widely expected and growth could be here to stay.

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Sector Number 2 for consideration are the Solar stocks

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TAN WKLY – Let’s start with TAN, the Solar ETF.  It has broken out above a descending wedge and that’s a bullish start. It does have resistance above, so Solars MIGHT stall for a bit or they could just break through. We’ll be watching.

TAN DAILY – We see a break out and it dropped to the 10sma and reversed on Friday. It is at resistance and overbought, so we’ll see if it can break out or does it need to build up some steam first. It could stall for a bit first, and we’ll keep that in mind as we go through individual Solar picks below.

JASO  – The RSI is showing strength and it is now above the 50sma. This could just continue higher.

JASO WEEKLY – This weekly chart would be a buy, but a stop should be placed at the recent lows. This could just run higher or it could start building a base and bore us to death.

SPWR– It had a huge pop on Friday, but it has also done this in November as seem in the chart. After the Nov Pop, it continued to consolidate, so lets look at the weekly chart for clues.

SPWR WEEKLY – It does look like a weekly break out, but overhead resistance is the 30ma. It could break through it coming out of that recent base, or it may stall.   I think that it is a low risk entry with a stop at the recent lows too, I’m just not exactly sure if it is ready to run higher quite yet or not.

VSLR – I kind of feel like VSLR may have just completed a measured move, but it is worth keeping a close eye on it in case it just continues on higher with some follow through buying. The weekly chart is awesome.

VSLR WEEKLY –  Awesome. You could buy & hold if you were patient and willing to just allow this one to do it’s thing.  It could just continue higher or continue to work its way out of that base.

ENPH –  I did a little research on this one.  It isn’t in the business of manufacturing Solar Panels or installing them, but it a product that goes hand and hand with solar installation.  For lack of a better technical explanation, their product converters the electric current ( solar micro-inverter systems)  and business seems to be growing.  You may want to do your own due diligence.  I love the chart.

ENPH WEEKLY – I really like this chart too. Can’t you just picture the right side of a cup forming here over time? I made up a name for that,  a recovery cup.  That would be excellent %-Gains for the patient ones, if it did recover. Is it ready to go?  Time will tell, but it looks like it is breaking out now.

SEDG –  I would wait and see if this one pulls back first.  It is overbought, but it adds to the idea that the entire sector seems to be rebounding. See also FSLR, JKS, TSL, RGSE,  SOL ( Breaking out soon?), YGE.

So it seems that the entire sector may be rebounding.  See also FSLR, JKS, TSL, RGSE,  SOL ( Breaking out soon?), YGE.  Some of these have done reverse splits in the past and some are looking weaker than others.  This means that it is best to do your own due diligence and as always, honor your mental or hard stops!

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Last but not least -And not solar  🙂

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I just wanted to revisit this recent set up.  On Feb 13th, I posted this chart of IPI looking like it may finally be ready to break out from a recent consolidation.

FEB 17th –  IPI now looks like it is forming a mini bull flag and building energy to break higher.

IPI WEEKLY –  And the weekly chart is also setting up in a very bullish manner. This is a good example of just how long these ‘recovery cups’ can take.

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Again, you may be satisfied with all of your current trade positions and that is fine. Do not let extra trade set ups in these sectors overwhelm you, this is a bonus report. We certainly should not feel that we have to participate in every set up that we find.  Keep in mind that among the many readers here, I have some very active traders that want new trade ideas from time to time, and this provides new trade ideas for them as well as another sector to invest in.

I hope all had a nice restful weekend, and enjoy your Tuesday trading!

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~ALEX

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This is a bonus report discussing 2 different sectors.  Please refer back to the weekend report if necessary, as you watch SPX, NASDAQ, WTIC, NATGAS, Gold, MINERS, and the USD today.

Note : THE USD is rising quite a bit this morning, it is good to see that GOLD is not dropping very much.  As I write, the USD is at 101.50, and I did mention this bounce as a possibility in the weekend report. I would like to see it roll over before hitting 101.75 to add to a weaker view of the Dollar.