No Big Changes yet

No big changes took place since the weekend report, but we do have quite a few charts to look at, so let’s dig right in…

 

SPX – The markets continued higher…

I was comparing the quick dip under the 10sma on the SPX (above chart) at the end of December to the one in late October, but the acceleration higher makes this look like an extremely shallow  dcl took place. If that is the case,  these markets really do look like they’re taking off in parabolic fashion. If you are long,  just enjoy this ride.

 

SOX – The break out in semis also pushed higher as expected ( along with CY, AMD, and other semis). CY & AMD were in the weekend report.

 

CIENA looks like a buy with a stop under Mondays lows at the 10sma, or the 50sma, depending on how much room you want to give it.

 

ICHR FRIDAY – This set up looks bullish and I would expect it to continue higher, but…

ICHR – It was held back at the 50sma on Monday. Watch for a break out and that could be a buy.

 

OIL is still in the 61+ area…

 

XLE –  This looks like a rising bearish wedge, and Energy stocks should become a buy on the next pull back.

 

WTI ON DEC 4th – I bought this twice expecting a solid break out & run as Oil approached $60 Sept thru Nov.  I sold it for SMALL gains when we got this reversal and drew this chart.  I figured that it would just continue to consolidate further, so I drew it in that way.  The OIL COT was high and I wanted to buy the pull back.

WTI – I was very close, but I did not buy the pull back due to Oils high COT.  It did a shake out for consolidation and took off without me.  🙁  I was left behind, but if it pulls back, I will be looking for this (and others) to set up nicely.

 

GOLD , SILVER, and THE MINERS started to pull back a little bit.  Lets take a look at the USD & MINERS

EDIT: As I proof read this at 5:30 a.m. Eastern time, I see the USD at 92.56

 

USD – We have been discussing that a DCL is due for the USD, we now see a swing low in place. This would be day 4, and I do NOT expect a strong rally.  The last daily cycle was left translated & weak. This one should be weaker. Can it get to the 50sma? Yes, but we’ll have to just wait and see.

 

As the USD moved higher,  GDX dropped below the 10sma and recovered a little bit. Please read the chart, this remains a bullish set up, and it MIGHT drop into a dcl as the USD bounces.

 

GDXJ– The Juniors dipped down and closed under the 10sma. GDXJ bottomed BEFORE GDX, so it may be leading the way and dropping as shown.  We’ll see. This will become a buy the dip opportunity, but I can’t say exactly when to buy until it arrives.  WE COULD EVEN POP TO A NEW HIGH first on day 20 or so, and then drop too.

 

So from the weekend report through Monday, our expectations haven’t changed. The SOX broke higher,  Oil may be pausing for a pull back  ( I know – I say that each week as inventory reports approach, and it just hangs in there. 🙂 That COT is bearish, so I’m trying to trade elsewhere for now).

Metals stocks continued higher  ( SID, GGB, AKS, CLF, etc).

We can’t tell if the Miners  (GDX, GDXJ) are going to fall into a dcl here, or will they bounce and peak on day 20 plus, and then fall.  We have to watch things play out, but a dcl is in place for the USD and it should bounce.

 The Medical Marijuana stocks were winners again, after that Thursday sell off. I mentioned that the Canadian ones were preferred by me going forward, to avoid some of the drama whenever ‘Sessions’ speaks, but I did also still like CNBX and a few others.   Well, some of these are getting extended, but take a look at where some of these are now.

 

MEDFF – $6 to $24+ in about 6 months.

 

TWMJF–  $2 to $32!  ( $5 to $32 in 6 months).  These are VERY extended, but they just keep finding buyers . Notice how these long cups are playing out?

 

SPRWF  – This was December 20 – Only days ago, I was pushing this break out from this long cup and …

SPRWF  – It has moved straight up & doubled from there.  That is why I was pushing this one week after week.  Yes, it is extended now, so am I selling?  I owned a lot, so I sold some, but not all at this point.  I will show I want to still hold some below.

So things continue as expected, below I will discuss  a couple of trade set ups  that I am watching. Enjoy your Tuesday trading!

 

~ALEX

 

How about a couple of Bigger Picture Miner Charts

 

GORO WEEKLY  FRIDAY –  This dropped 10 more cents Monday, but the bigger picture shows it as a buying opportunity coming up. This could easily drop to $4 and remain quite bullish.

 

VGZ WEEKLY FRIDAY – VGZ didn’t really drop on Monday, it looks like it is trying to force a break back above support (shake out?).

 

LUMBER LIQUIDATORS – I do like what I see here so far, but you may want to be out of this one by Earnings at the end of January, and this is why…  At the end of July, they got a huge gap open from earnings. At the end of October, they dropped to the eventual Gap Fill and found support at the 200sma. Now after riding support, they closed above the 50sma.  ( You can Ignore my note to Reese, this was sent to him last Friday)

 

I LIKE THIS – Read the chart, I’m just looking for it to finally pop.

 

CRMD JAN 4–  I pointed out CRMD last week at 57 cents. It looks ready to pop.

CRMD–  Still looking good at 56 cents 🙂  Put this on your watch list, a break out could run nicely with this base.

SPRWF – So yes, this looks extended.  Why did I say that I wasn’t selling all of this?  I’ll give you 2 reasons…

 

reason #1

APHQF – I sold APHQF at $9 on this weekly chart, was it extended?  Maybe but it just hit $17.72 yesterday.

 

Reason #2

SPRWF –  On a daily close up, I can picture this just working off the overbought stage like this ( bull flag or sideways consolidation to the 50sma) and leaving me behind like APHQF did.  For now, I will hold on and see if the 10sma catches up and it goes higher, but a sharper drop below the 10sma may have me trading out.  These are very strong bulls right now.

 

139 replies
  1. Johnny
    Johnny says:

    Alex, thank you for the early report. I know its not always possible but when it occurs its so cool for those of us with inconvenient schedules. How do you ever get good sleep? Lol! 🙂 Thanks!

    • chartfreak1
      chartfreak1 says:

      Thanks Johnny – Good sleep comes on the weekends, ‘ just enough’ sleep comes with the job 🙂

      Is your Avatar “Geffen Records”? It caught my eye

  2. Bill
    Bill says:

    Alex, Ive been in TWMJF since $15, I jumped in CNBX and BUDZ Friday on the pullbacks. Unbelievable gains. I think we get another day or two up then I start transferring over to blockchain and miners. I think blockchain is getting ready to run higher again. GROW, MARA, BTSC look to be finding support at the 50sma. If I see a reversal I’ll jump in.

    • chartfreak1
      chartfreak1 says:

      Yes, the gains have been unreal, I have been in many. I was hoping for MARA to do a gap fill & a 50sma stop run at the same time, but so far the 50sma has held. I have not bought any blockchain yet, personally. SRAX really caught my eye last week, but seems to need more time too.

  3. roger
    roger says:

    I admire your energy and effort. As usual finding all these great breakouts and I have so much fun. Thank

  4. Kathleen Chow
    Kathleen Chow says:

    Thank you for another great report, CF. I’m holding CBWTF.

    CBWTF alliance with a franchise operator:
    CANNABIS WHEATON INCOME CORP. ANNOUNCES STRATEGIC INVESTMENT AND ALLIANCE WITH INNER SPIRIT HOLDINGS LTD.

    Cannabis Wheaton Income Corp. (doing business as Wheaton Income) has entered into an investment agreement with Inner Spirit Holdings Ltd. providing for a strategic investment by the company in Inner Spirit, as well as a strategic alliance agreement that will govern the continuing business relationship between the parties.

    Inner Spirit is the parent company of Spirit Leaf Inc. (“Spirit Leaf”), which aims to be a market leader in the franchising of retail cannabis dispensaries in jurisdictions in Canada where the private distribution of recreational cannabis is legalized. Inner Spirit has currently executed over 95 franchise agreements in Canada for proposed retail locations (each an “Spiritleaf Retail Dispensaries”).

    Under the terms of the Investment Agreement, the Company will acquire 15,000,000 common shares of Inner Spirit (the “Inner Spirit Shares”), representing approximately a 18.5% of the outstanding Inner Spirit Shares. In exchange for the Inner Spirit Shares, the Company will provide Inner Spirit with: (i) a cash payment of $350,000, (ii) 674,418 common shares of the Company, each with an issue price of $2.15 per common share, and (iii) 1,250,000 common share purchase warrants of the Company (the “Warrants”), exercisable at $2.53 per common share for a period of 24 months from the closing of the Transaction. The Warrants are subject to certain vesting conditions related to Spirit Leaf achieving certain operational milestones.

      • Kathleen Chow
        Kathleen Chow says:

        Agree, Cannaber:) Also CNBX should be a core holding based on their work on the medical front IMO. Your thoughts?

        • cannaber
          cannaber says:

          CNBX has a big enough marke cap that it will attract money..based on the action it is looking like it might go sideways now, I have a position that I might sell in the next day or two….I am redeploying to go into miners and crypto for the next swing higher there…..

  5. nancytheartist
    nancytheartist says:

    Alex, could you please comment on CRK? I have held this a long time and it just keeps moving up but is mostly a gas stock…? Seems contrary. Is it time to let it go?

  6. Cal Staggers
    Cal Staggers says:

    Good morning, Alex,

    You mention that GDXJ could pop to a new high on Day 20 – are you using the GDX day count? I think GDXJ was on Day 20 yesterday?

    THANKS for keeping steady on our view of miners!

    • chartfreak1
      chartfreak1 says:

      Hi Cal-

      Dont take the number #20 literally. I am basically saying that it didnt mean the drop into a dcl is guaranteed to have started. In general terms, it could still pop to a new recent high & still drop. In the weekend report I was saying it could top on day 20+

    • chartfreak1
      chartfreak1 says:

      Yes, I actually had 3 charts for the report last night & forgot to load them

      Basically- it can fly, but it has done massive inverse H&S– look on a 5 yr chart….it did NOT EVER trade at $5000

  7. Ralph Wiederzane
    Ralph Wiederzane says:

    GDX has it´s 200 MA on the daily at $22.72, and the 50 WEEK MA at $22.85, so I am betting this is short-lived, can ride another day or two lower if those levels have to get touched.

  8. Kathleen Chow
    Kathleen Chow says:

    ATTBF news:
    Abattis Announces LOI for Partnership with Alliance of Beverage Licensees

    VANCOUVER, British Columbia, Jan. 09, 2018 (GLOBE NEWSWIRE) — Abattis Bioceuticals Corp. (the “Company” or “Abattis”) (CSE:ATT) (OTC:ATTBF) is pleased to announce it has signed a letter of intent (“LOI”) with the Alliance of Beverage Licensees (“ABLE BC”) to establish an exclusive complementary partnership in ABLE BC’s member stores.

    British Columbia’s Alliance of Beverage Licensees (ABLE BC), is an advocacy organization representing BC’s private liquor industry, including private liquor stores, neighbor pub, and hotel liquor licensees.

    The LOI outlines an exclusive agreement between Abattis and ABLE BC to offer expert technical advice regarding the commercialization of cannabis products sold in ABLE BC member stores and locations.

    “We are very pleased with this strategic partnership,” said Rob Abenante, President and CEO of Abattis. “This partnership brings significant mutual potential for Abattis and ABLE BC given our role in Cannabis testing and ABLE BC’s potential role in Cannabis distribution.”

    Both parties have acknowledged that the Federal Government of Canada has introduced legislation to lift the prohibition on adult-use of recreational cannabis, and that each provincial government bears responsibility for deciding how recreational cannabis is retailed and distributed within its borders.

      • Ralph Wiederzane
        Ralph Wiederzane says:

        All in all I like how my miners are hanging in on the first back to back down days in awhile. Unfortunately, I had to cut NSRPF loose at breakeven. Other than that, only buying today. 🙂

  9. Edward Bernhart
    Edward Bernhart says:

    MEDFF : Selling 5M units (Each Unit will consist of one common share (a “Common Share”) and one-half of one common share purchase warrant (each full common share purchase warrant, a “Warrant”) of the Company. Each Warrant will be exercisable to acquire one common share of the Company for a period of two years following the closing date of the Offering at an exercise price of $34.50 per common share, subject to adjustment in certain events. ) For $26.50/unit (Not for distribution outside of Canada) What gives with that?

      • Chris
        Chris says:

        Now there’s a memory and a half!! I wonder how many of today’s market participants remember it let alone experienced it!!? Until ‘Black Monday’ in the UK markets the mood was definitely that markets would never drop again!! And trying to get a bid for stocks was like trying to find a needle in a haystack!!

          • Chris
            Chris says:

            Hi Ron. I was working as a stock broker in early ’87 but jacked it all in a few months before the ’87 crash. I felt the markets were going ‘nuts’ and got sick of advising people not to chase stocks only to see them rise another 10% or more the following week!! In the end I’d had enough and didn’t want to be around trying to pick up the pieces when a correction finally came. I NEVER envisaged what actually happened though and although I can’t recall what happened to miners back then all I know from all of my former colleagues was that it was a total blood bath on the Monday morning and for weeks afterwards and although people were desperate to sell, the buyers virtually disappeared and if you could get a bid at all it was almost certainly going to be in very small size and at MUCH lower prices (25% to 50% below the prior Friday!). Although markets did eventually recover, at the time it was total carnage and I personally know of people who had literally bet their houses on rising stock prices and lost everything as a result!! Greed was replaced by fear in a heart beat and it really did change that fast!!

          • Chris
            Chris says:

            What I would add Ron is that based on normal historical criteria stocks in general are at nose-bleed valuation levels compared to the last 100 years plus. However, miners are historically at one of the most under-valued levels relative to general stocks. From a longer term investment point of view that suggests they have a lot more going fro them than most of the general stock market. But trying to plan for let alone actually time an actual ‘crash’ event is just about impossible.

      • nancytheartist
        nancytheartist says:

        Just came in so I missed the error…but I am suffering with you in the BOT….on a long term chart…what a nice long bottom to come up out of….PLEASE!

        • chartfreak1
          chartfreak1 says:

          I ALMOST sold it and was going to add to my MGXMF, but I looked at that long base in a 1 yr chart ( weekly or daily) and I feel that as long as it doesn’t violate the lows – I should hold on and see if it can pop. It would be so easy for that weekly chart to pop to $2…. after I get out -lol

        • SonOfGud
          SonOfGud says:

          my error, was in repeating sections of the comment of the comment (a bit like that)…
          annnd…….to paraphrase Apocalypse Now!… one day, this BOTs gonna end

  10. Steve Tytler
    Steve Tytler says:

    Miners are still a “sell” (down trend) on my charts, so there is probably more downside ahead. But I’m taking a chance here and adding to my JNUG. I didn’t post the trade here, but I sold 2/3rd of my JNUG last week. Looking to buy it back much lower. I added back about half of what I sold today. I’m still concerned about the bounce in the dollar so I’m holding some “dry powder” to buy more JNUG lower (I hope).

    • marinho
      marinho says:

      Steve, didn’t you have a phantom bar at 22.98 for GDX a few weeks back? today it looks like it touched the price and went back up. Do you think it is enough of a correction in the big pm stocks? I see GG green and I am thinking that after having stunk the place for so long they may have a turnaround here

        • marinho
          marinho says:

          ahhh! THANKS. it looks like the phantom price was at 22.86-87, so maybe another spike down in a couple of days.

        • YS
          YS says:

          Steve, to be honest, these days I realize this is not useful at all. I lost lot of opportunities to use this as a guidance. For me, I think this is just some after hours’ random trading for some very small traders.

          I used to be fanatic fan of this, not anymore. Mainly just someone wants to scare you out of your positions. People entered a ridiculous low price and then cancel the small trade immediately. For me, it’s a very stupid trick.

          • Steve Tytler
            Steve Tytler says:

            YS, I never suggested that anyone should base their trades on these long-tail candles. I posted them in the past mainly for “entertainment” purposes. They are not predictive. Sometimes they hit, other times they don’t, I certainly don’t plan my own trades around them.

    • RonB
      RonB says:

      I sold all mine at 18.08 and going to give it some more time to complete the move. This is only day 3 or 5 of the move off the DCL for the USD so thinking there might be a few more days of pressure on the miners.

      • Steve Tytler
        Steve Tytler says:

        Ron, I was thinking of doing the same, but it’s always tricky to sell everything and then buy back in later. Sometimes it does not drop as much as you hope and you end up buying back in higher. So far so good as far as the drop goes. My charts indicate that JNUG may drop very deep, similar to the sell off after the September top. So I have decided to sell some of what I bought this morning because I think I may get a better price later. It’s a balancing act and almost impossible to make a “perfect” entry.

        • RonB
          RonB says:

          I know it can be tricky getting back in, but I nailed a good profit and don’t care if I get in again or not. I just know the last few days of these moves can be the most painful and caused me to throw in the towel in the past, so happy to be on the sidelines for now.

          I am going on holidays next week too, and wanted to stream line things a bit, so I am sitting in the bushes with my list of miners and will hopefully load up again from some airport lounge somewhere.

          • Steve Tytler
            Steve Tytler says:

            Ron, on further examination of my charts I am going to follow you lead and go to cash and wait for miners to drop further. Like you, I have a BIG profit from trading JNUG since the Fed meeting and I don’t want to give back any more of my gains. That’s just my personal trading decision, please check your own charts and make your own trades.

          • RonB
            RonB says:

            I agree about the personal trading decision Steve – that’s why I didn’t say anything about selling. Everyone has their own risk tolerance, and for some unknown reason I sweat the wiggles and can’t seem to handle a draw-down. Others can just put on a trade and let it ride.

          • Steve Tytler
            Steve Tytler says:

            Miller, I use my own charting system which is different than what Alex does. Alex is the MASTER so listen to him. I noticed last week that my daily chart of JNUG looked like the top last September, which is why I sold a big chunk of my JNUG last week. I did not post that trade here because selling is a personal matter and everyone should have their own exit strategy for each trade. I use a “trend following” model that relies heavily on MA’s, TSI and other indicators. Right now, those signals on my daily chart of JNUG are very bearish so I anticipate more downside. But I could be totally WRONG, so please don’t follow my trade. Today may be a short term “bottom” if I am wrong, so this may be a time to buy rather than sell. As Ron posted, selling is a personal decision. My trade is based on my desire to lock in the rest of my profits in JNUG and wait/hope for a lower price to re-enter.

        • chartfreak1
          chartfreak1 says:

          They dont look bad, it’s just that they move so fast in either direction until they get off the lows.

          Like GROW dropped from $5.50 to $4.30 in the last 2 days, however – they are above the 50sma.
          I was kind of waiting for RIOT to stabilize above the 10 sma.

          It doesn’t look bad though, just jumpy so far

          • Steve Tytler
            Steve Tytler says:

            I don’t have the guts to set my stops all the way down a the 50 day SMA. Even though they were small positions, I don’t want to take that big of a loss on something as risky as bitcoin stocks. I have a couple MJ stocks, CNBX and CNAB that are doing OK, although CNBX is red today.

  11. Kathleen Chow
    Kathleen Chow says:

    Thanks for the color, everyone:) I’m also looking to add to my USLV. Think silver will really go when the time comes:)

  12. cannaber
    cannaber says:

    Bot DPW – gap fill after relentless drop – target new highs on the coming rally, 100% plus return

  13. Chris Fikis
    Chris Fikis says:

    SLV – Looking to lock in a silver purchase (physical) for delivery. My last purchase was in the 15’s back in December. If you follow the monthly chart on gold/silver it’s looking a lot like 2003 again, when prices kept going up for years. The difference is now we have record debt, global uncertainty and a dollar that’s getting “dissed” by the rest of the world.

    • chartfreak1
      chartfreak1 says:

      I do believe that when Silver breaks above that inverse H&S from the chart in the weekend report ( or recent downtrend line), it is going to be recognized by a lot of buyers. buying physical in this area will probably be a great move in hindsight later this year

    • fubsy_cooter
      fubsy_cooter says:

      do you have a broker you like to work with on physical metals? I’ve been wanting to get some junk silver.

  14. fubsy_cooter
    fubsy_cooter says:

    Added 10% to my GDXJ and 2% to JUNG on this bounce off the 20dma.
    Will add a bit more on a swing on the daily.

      • fubsy_cooter
        fubsy_cooter says:

        I totally get the desire to ride a rally, but afrer a rise like we had for almoast three weeks, the sector is behaving well. It offers an oppty to add to positions. I’m convinced that precious metals bulls are the most adept at knocking off as many riders as possible (most difficult to ride), so the trick is to find low risk ways to do buy at turns or add to positions mid-cycle like playing bounces off of moving averages, buying oversold rsi or aimw other tactic to avoid nauseating drawdowns.
        Anyway, the odds are hugely in favor of higher highs over the coming weeks.

      • deshy
        deshy says:

        wow! clearly a lot of hot money out there. yesterday you couldn’t have paid anyone to take Kodak shares. Maybe I can convince somebody my polaroid spits out alt-coins from the front and some millennial will give me lots of $$$$ for it 🙂

        • Cason
          Cason says:

          Maybe Sears and JC Penny’s can save themselves, too. Or at least pop enough for CEO/Board members to sell their shares!

    • Tammie
      Tammie says:

      I have this one…..I was thinking gap fill also so glad to hear you are thinking that….looks like a lovely cup to me, I might get more….they have revenue, not just development stage but actually selling product

      • chartfreak1
        chartfreak1 says:

        I own it from when I posted about it down at the base. I figured that since I am already up on it, I added on the gap fill. I also like that it is one that is still close to the base, not really over extended, and Canadian based.

        It could drop a bit further though, to the blue line 10 sma or so.

    • chartfreak1
      chartfreak1 says:

      Hmmm, I didn’t see that drop. It is still a cup & handle, but the handles dip is a bit drastic.

      SO far it sits on the 20sma, and you really dont want a handle to retrace more than 50% of the cup height, so I wouldn’t buy it without a reversal in place, but If I owned it, I would probably hold & keep an eye on it.
      I didnt see any news eother

  15. Bill
    Bill says:

    Interesting day in MJ sector. Looked like it wanted to sell off early chased me from 2 positions. Still holding BUDZ. What do you think shakeout and continued higher? I look at CANL and the wicks at the bottom seem to indicate it won’t be sold any lower.
    https://www.tradingview.com/x/vhE0V2fs/

  16. cannaber
    cannaber says:

    made a pretty fair cross over today – now 30 pct MJ ….25% cypto ……30% miner……. 15% cash
    plan to be 50% miner 50% crypto by weekend

    • Steve Tytler
      Steve Tytler says:

      Cannaber, why are getting out of MJ stocks now? Do you think they have topped? I thought you were “Mr. Pot” 🙂

      • cannaber
        cannaber says:

        I am up about 70% since Xmas, basically 100% weighted in MJ’s….I am gambling MJs take a rest for a few weeks while the miners and cryptos take a turn….
        The miner/crypto set ups look ready to give us 50-100 pct returns in 2-3 weeks if the trends resume…and it appears to me as if both will resume this week……
        looking for CF to guide us in, am a little early on crypto maybe but buying the miners on the dip

        • cannaber
          cannaber says:

          and I don’t honestly think, much as I LOVE them, that MJ will return 50-100% bnext 2 weeks…..more likely they go sideways…I will be back in the words of the Terminator!!

          • Steve Tytler
            Steve Tytler says:

            Wow, nice return on your trades! I’m holding small positions in CNBX and CNAB but mostly in cash right now looking for buying opps in miners, TQQQ/UDOW and/or cryptos.

          • cannaber
            cannaber says:

            my cryptos are RIOT MGTI SSC SRAX MARA DPW…setups look pretty identical
            Miners mostly silver GPL SVBL HL EGO AG EXK

  17. littletimeleft
    littletimeleft says:

    GRDO: guard dog inc the latest to announce they are entering the digital mining and rig hosting space. on watch for tomorrow.

    this one sounds much more legit:

    BRPHF: up 5,163% today.

    Michael Novgratz, the former Goldman partner, wants to build the
    Goldman Sachs of crypto, according to a source. In a filing today, he’s
    laid out a series of steps to raise $200M and take his Galaxy vehicle
    public on Canada’s TSX Venture Exchange.

    The crypto merchant bank will be involved with trading, principal investing, asset management, and advisory work.

    Step one will be the purchase of Canadian crypto
    startup First Coin Capital. Next will be a reverse takeover of Canadian
    shell Bradmer Pharmaceuticals (OTC:BRPHF).
    That entity would then look to raise C$250M ($201M) in a private
    placement next month, and be renamed Galaxy Digital Holdings.

    Novogratz plans to put nearly all of his crypto
    investments into Galaxy – roughly $400M of Bitcoin, Ether, and ICO
    stakes, as well as positions in blockchain-related startups.

    • cannaber
      cannaber says:

      this will be the means by which he liquidates his positions….I am not saying now but in the future….very clever

      • littletimeleft
        littletimeleft says:

        perhaps, would most likely be more tax advantageous than to pay via personal capital gains. i wonder how the IRS will treat his “donating” his holdings to the corporation

        • cannaber
          cannaber says:

          that will be accomplished by booking his new shareholdings on cost basis—-no gains taken until his shares are sold….

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