Some of my colleagues at TheStreet were in the office late Wednesday night covering the last presidential debate. Really top-shelf minute-by-minute reporting and analysis. Kept me glued to my twitter feed during my commute home. Of course, many boxes of pizza were delivered to the office to fortify the troops and pair with the coffee and caffeinated sodas.
Not all the pizza was eaten, however, and the leftovers were in the pantry refrigerator, first come, first serve Thursday morning. This is something hard to explain unless you have been there. It has only been some 47 years since my freshman year in university but I just had to have some pizza for a second breakfast. Sixty seconds in the toaster oven and you have it. But be careful with that hot cheese because this time your wardrobe costs more.
The second flashback I had yesterday was that I wrote about some marijuana plays back on Aug. 11. Taking a quick at the stocks in that story I quickly saw that they had soared.
Time for an update.
In this daily chart of AeroGrow International (AERO) we can see the four-week consolidation in the $3.00 to $3.50 area before prices soared north in September and again this month. Notice the positive positions of the moving averages and the new highs made on the On-Balance-Volume (OBV) line.
Turning to this longer-term weekly chart of AERO, above, we can see the indicators are in a strong upswing here, too. A rising 40-week moving average line, positive OBV and a bullish MACD oscillator.
After a base at $3 AERO is likely to achieve multiples of that on the upside or $6 and then $9.
In this daily chart of Cannabis Sativa (CBDS) , above, we can see a parabolic upswing. You may have been able to buy CBDS in August at $2 and now it crosses $8. Wow! That is a technical term for really impressive. All of our favorite indicators confirm the move higher.
In this weekly chart of CBDS, above, we can see the rally and the old resistance in the $8 to $10 area. This resistance may not be a problem as there was very little volume traded in that area in 2014 and if you owned CBDS at $8 you probably threw in the towel in the next year as the stock fell to $0.50. What this means is that these old longs are gone and not likely to be sellers when prices get back to their original purchase price.
I would not be surprised in this environment that CBDS reaches $10 before a sideways correction develops.
In this chart of Terra Tech (TRTC) above, we see that prices are still consolidating but notice the strong move up in the OBV line. Buyers are being very aggressive and I would anticipate a breakout over $0.50 soon and a rapid climb to the $0.75 to $1.00 area.
The following four charts are of other companies in this space that one subscriber suggested. We have included them in this update for "completeness," but while they have had impressive moves and volume has mushroomed I am not all that comfortable recommending them.