The Japanese Narcotics Control Division and the Japanese Ministry of Health have approved New Age’s CBD products for sale in Japan.
In December 2018, I went on Real Vision and gave them this New Age (NBEV) as a stock pick for 2019.
Little did I know at the time, that the pick was good for the end of 2018, but had a vicious sell off once 2019 began.
I stopped paying attention to this stock once it broke $4.00.
Then today happened.
I do have this theory then when times get rough, Bob Marley, which NBEV has an exclusive contract with to show on the cans of tea, will become more popular.
Face recognition, good vibes, great music and yes, famous for smoking herb.
So, I find it fascinating that a day when headlines ruled the market action, NBEV had an awesome day, barely moving lower with the news.
Therefore, we will explore the key levels of the indices and sectors, but first, is NBEV worth buying again?
Before we look at the chart, the last couple of days I wrote, “This recent rally is built upon optical illusions.”
With the Modern Family in disarray, we certainly saw that optical illusion shift. More on that with the levels below.
As far as NBEV, the price rose 17.41%.
Over 12 million shares traded today with the typical average volume about 2 million.
That’s lots of short covering and new longs.
On the left is the weekly chart. NBEV is hugging the 200-WMA (green line).
We can call 3.00 now the pivotal area for this to hold.
On the daily chart, the run today stopped short of the 50-DMA (blue line).
Over 3.46 should clear it.
I’d be willing to do a starter position provided it holds over 3.00. A move over 3.50 is healthier. But clearly, this stock has lots of resistance to clear on the way up. Can it get to 4.00?
Just ask Bob Marley. He sang, “I don’t wanna wait in vain for your love.”
Have a listen-Why Everything You’ve Learned About Investing Could Be Wrong My podcast with Jordan Goodman Money Talks 9/23/19 https://www.moneyanswers.com/podcast_details.php?id=167
S&P 500 (SPY) 294.81 is the 50-DMA. The slope is negative. Therefore, the chance of a pop is not dead. However, until it clears 300 again, I would not get too long.
Russell 2000 (IWM) “155 must hold (closing basis) or we will see a move closer to 152.25 or its 50-DMA”. From last night-uh-huh. 152.14 the 50-DMA then next support is at 151.10.
Dow Jones Industrials (DIA) “We want to see this hold 266.50” Miraculously it did.
Nasdaq (QQQ) “192 immediate resistance and could easily see 189.44 the 50-DMA or worse, down to 187.37 next” Today’s low was 187.15. Now in an unconfirmed caution phase.
KRE (Regional Banks) “52.23 key support.” Today’s low 52.25. With lower highs, this looks heavy.
SMH (Semiconductors) Under 118.31 or the gap low from September 5th. Unless it clears, could see 116.00 or the 50-DMA.
IYT (Transportation) 186.33 now the 50-DMA resistance. 184.47 is the 200 DMA. Unconfirmed phase change to caution.
IBB (Biotechnology) 102.57 is the 200-WMA which just failed. Plus, this went back into an unconfirmed bear phase.
XRT (Retail) Under 41.14 not good.
Twitter: @marketminute
The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
