Let´s get back to business

Hi L.,

As promised in the last entry, let us review last week and make some plans for the week to come. Spoiler alert: I did not trade last week (Alas!). Let us judge my “predictions” anyway. As always, since I did not trade we never will now if I would have made money off of the patterns which presented themselves.

Anyway, here we go:

The first one on the list is EMHTF. On Monday, the breakout did occur in the first minutes of the day. As we can see, the breakout level became support and got tested two times before the stock grinded upwards for the rest of the day. The next day, EMHTF gapped up slight and ran, before selling off, testing the previous close and finally going as high as  $7.77.

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AVLIF and LTUM, the next ones on the list, are still consolidating. We will come back to these two stocks later on. The same goes for PVOTF.

ACBFF actually is the failed breakout of the week. After breaking out of the $11.8 area it could not hold its upwards momentum and has been selling off since then. Still, I will be watching this stock next week again. I have to admit however, that the price action was not at all what I would have expected.

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SRNA – wow what a breakout. We see that it broke out the 23rd during mid-day, spiking from around 34 cents to 39 cents in a matter of minutes. It actually did go below the breakout level again for a short period of time, which shows that the breakout will not always be perfect. Then, SRNA had a huge bull run until the market close. The next morning i fact it did gap up. Then it sold off big time however and given the difficulty of trades being filled in OTC markets, it may have been difficult to take profits here.

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UMFG. Well, we saw the crash coming and it did come. As anticipated, the break of the previous day´s close triggered a huge wave of selling orders. Look at this crash. From $1.6 down to $0.8 in around 4 minutes. There, we had the first bounce possibility when UMFG went back to $1. I was watching level 2 at this point and one in fact, could “anticipate” this bounce. But one had to be quick and admittedly, UMFG did not bounce as much as anticipated at this point. Later in the day, once more it offered a 50% bounce from $0.4 to $0.6, but I have to admit that it was tough to profit off of this crash.

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MGXMF followed the breakout playbook quite well. After breaking out at $1.3, it closed strong and went to $1.56 the next morning.

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And ARFXF. Well, what can I say. The breakout at 22 cents was followed by a spike up to 44 cents the next morning. Not too bad of a brekaout.

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Now, let´s make some plans for the coming week.

As mentioned before, AVLIF still hovers just below the crucial level of 13 cents. It broke out for a minute last week but has failed thus far. I am looking forward to buy the breakout next week.

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I have quite a few cannabis stocks on my watchlist. The first one is OGRMF, where I will be watching the $4.6 level.

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The next Cannabis play is PVOTF. Under the constraint that liquidity returns, I will looking for the breakout in the mid $2.4s.

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VFFIF, yet another pot stock, will be interesting to look at if it gets to its previous highs at $7.8.

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The final Cannabis stock MRRCF looks very promising if it breaks out of the $3.6 level. Watch the liquidity though.

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Yes, I know that biotech stock ARFX is already super extended, almost tripling in a matter of days. However, I guess this can spike big time again if it reaches 45 cents. I would play this with very small position size. Once again, watch out for constrained liquidity though.

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These are the main OTC watches for Monday. For the rest of the week BLOZF, ACBFF, DJACF and LTUM look interesting and maybe more will pop up on my radar.

Have a great week.

Best,

Nils

Happy 2018

Hi there, happy new year!

It has been a while and this is going to be a short post too. I just want to post a list of the stocks I´ll be watching next week – all of them OTC and basically for all of them (but one) I am looking for the typical breakout pattern. To be honest, I do not know if Ill be able to trade these patterns in the coming week but I want to take account of what I expect to happen anyway. I am confident that in the weeks to come I will be more active again.

So, here we go my dear.

Emerald Health Therapeutics Inc. (EMHTF): Even though this stock related to the cannabis sector has already risen more than sixfold in the recent past, I´ll be looking to buy the breakout at $ 6.5.

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Advantage Lithium Corp (AVLIF: Looking for the breakout at $1.13.

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Lithium Corporation (LTUM): This is going to be highly correlated to AVLIF. Looking for the breakout at around $0.62.

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Aurora Cannabis Inc. (ACBFF): And another Cannabis stock. Looking at the $12 level for the breakout.

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Surna Inc. (SRNA): And another pot stock. Watch the $0.37 level.

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Pivot Pharmaceuticals Inc. (PVOTF): I´ll look for a breakout at around $2.5.

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UMF Group Inc. (UMFG): This pot stock is the one exception. Given its recent chart I do not want to buy UMFG – at least not too soon. I expect that this will experience a huge panic at one point in the coming week when a print below the previous day´s close will trigger stop losses. Then I want to buy the dip.

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And now let´s have a look at two stocks that already have broken out and that I expect to gap up on Monday.

MGX Minerals Inc. (MGXMF)

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ProMIS Neuroscience Inc.

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Wow, almost more charts than words – but this has to be enough for this time. I hope more charts and especially more words will come soon.

Best,

Nils