HAPPY 4/20

Stocks are ordered to trade higher on this national day of all things “high.”

Since the latest discussions have been pointed towards all stocks that are perversely risk in nature, I will focus on getting high in Mary Jane stocks today.

I already own $TRTC, $CANV, $HEMP and $CBIS.

Last night we looked at $DIGP, $ZYNE, $PMCB and $MSRT.

I know you must have one or two of these on your radar, and since there’s too many to list….which ones if any do you like?

OA

Take a look at the lower time frame of the market here, particularly the Russell. The RUT ripped off the open this morning while the Nasdaq plummeted in the first hour.

I’ve been watching the lower time frame of the market here, and the charts took me back to late 2011-2012. Here’s a quick comparison of what’s happening on the lower time frame.

I’m mixing time frames here, but patterns like this are applicable on any time frame as you know. But in both instances the market rallied sharply after trauma. Then, the angle of the trend changed and got slower. Many view this as a sign of weakness, but notice in 2012 where we traded outside the channel, a simple retest was bought, and that created a steeper trend, similar to the initial thrust off the low.

If we are near the LOD here, and breadth does not hit an extreme, be cautious of getting lured in here. Wait as long as you can to see this play out first.

OA

It’s about this point in the rally where we start to start to see trashy stocks catch a bid. I’m talking the under $10 crowd. When the market starts to slow down like this, these stocks heat up. By “heat up” I mean that you’ll see many of these names hit +15% movements per day. A lot more than you’ve seen on the way up.

I’ve put together a list of names I want to trade here in the near term. They are as follows:

$IPI

$GLUU

$CRC

$NM

$PLUG

$GNW

I have a few others, but they’re worth watching a bit longer before taking action. These names above look actionable to me.

Got any stocks in that price range you think look good?

OA

$MTCH up 6% for no other reason than that Dave and Tom over at Fool.com suggest this stock as a buy. Glad we beat them to it.

I’m contemplating allocating some funds for Earnings Plays in stocks where there are open volume pockets. For next week, I started with a position in May $KMI calls.

My philosophy on these are simply P3…

• Pattern – Good consolidation
• Profile – Good open profile above
• Premium – Recent contraction in option premiums.

I’m making a list for this earnings season. I want to try maybe 4-6 plays, so that I might happen across a win or two to pay for any losses.

OA

Fairly quiet on here today. Perhaps that might be due to my blog being positioned in the basement.

I booked more gains in $DATA and will be booking $GOOGL gains shortly. I got stopped out on $VSLR for -.19, but got right back in at $3.04…same stop.

As of tomorrow, I have $YELP, $ZG, $GOGO, $FSLR and $HABT calls expiring worthless. I am trying to milk some premium out of $VMW and $TWTR before tomorrow, and if I can, I’ll feel pretty good about how I navigated this months expiry.

Moving forward, here are the names I have placed bets on:

$AMBA, $PYPL, $FB, $FEYE, $XONE, $GPRO, $FIT, $SFUN, $SOHU, $BABA, $TWTR, $KMI, $HABT, $MTCH

This does not include stock positions. These are active option trades.