Watchlist for 2/6/14

MJNA - Weed stocks continue bring in liquidity & great price action as the money rotates between the different names. Im thinking that MJNA is the next to return back to highs, the stock has been consolidating at highs recently and today finally closed above the prior day high for 1st time since it topped out. Watch for a move above .37c tomorrow, if it gets that then I think the door opens up for a move back to highs. I am long MJNA overnight.

CBIS - Saw a nice gap & go today and I think tomorrow we will see more of the same. I took CBIS overnight again. There is gonna be resistance at .32c but I think if it gaps above that level we could see a squeeze up to next major resistance around .43c (view a 5yr chart to see it ).  I am long CBIS overnight.

HXM - Broke above the lower level flag today as it begins what I think will be a powerful swing play up to 2.20ish in the next few weeks. Key support going forward is now at 1.65, as long as it continues to put in higher lows I think the swing trade will work. The next big resistance to watch for is at 1.90, it tried to break it today but got rejected. Perhaps it can break it tomorrow.

ERBB - Looking for a break above recent highs at .0193. This is another weed stock that has been hovering right under highs recently and today it saw a gap up but then spent the whole day consolidating at highs. Could see .03c as a magnet going into next week. Todays low is a key support level at .016

PAYD - Broke above the bull flag we highlighted the other night. Looking for another multi-day move here, something that PAYD has a done numerous times in the past. Next resistance is at .27c and then after that it opens up to .40c .

OPTIONS 

AAPL - I came into this week long AAPL and although I have changed my position a few times I am still long AAPL tonight and looking forward to tomorrow. I love how it closed today and the daily chart has a really nice setup. Tomorrow its gotta get above 515 in the morning (earnings day high) and if it does that then were into a very wide gap and I would look for a move back to its 100ma which is at 523.

GMCR - This stock got some huge news after-hours and the stock responded in a huge way. GMCR has a very high short float and I think could see a 20pt wide range tomorrow. It will open high tomorrow and I anticipate a morning dip as profit takers get out and that will be the dip I think thats buyable. Some key levels of support at 105.55 & the 112-114 range from viewing the after-hours chart.

EBAY - Big engulfing candle today absorbing the last 5 days of sideways action. I think we begin a move back to the top end of a long term triangle which is up at 55.00 this week.  A move above 53.85 would be the trigger long area.

VXX - I believe that we are very close to finding a market bottom, and if not then the bottom is already in. Either way every time the VXX makes a big move to the upside it should be on top priority to get short VXX in some way or another. For those of you who don’t know the VXX is an ETF that tracks short term movements in volatility (VIX) and once volatility either goes back down or flattens out the VXX will begin to sell off yet again. The VXX continues to do reverse splits to bring the price back up higher just so it can sell off again. Looking at the last 5 years the VXX has dropped (post split(s)) from 7680.00 down to 40.00.  Look into getting some monthly either Feb or March puts if you also believe the markets are going to bottom out soon because once the VIX drops we will see VXX continue back down to lows.  I am in VXX 44x Feb monthly puts & will be also buying the March 45x puts tomorrow.

Remember this is just a watchlist and do not guarantee to be profitable trades. Use your own judgment when making the trade.

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