Hey Subscriber,

On Monday we said this about Tattooed Chef TTCH stock and warrants.
 

"We are right under short term support with the 10-day/20-day TRADING support at the close today.
KEY support obviously is down at the 50-day support line at $21.50.

This chart says price action is pretty weak and the
50-day support is the next key support level for long term shareholders."

We advised those who are still long TTCFcommon and/or warrants (after what I hope is AFTER following my hectoring into the pre-merger melt-up to $28 "TAKE ENOUGH PROFIT in the warrants to get all your original money back plus 6X return PLUS all your money and 1X profit in the common) to

" BUY the January 15 TTCF $20 PUT OPTION and sell Jan 15 $25 Call Option for $4 BUCKS (one call option is 100 shares of TTCF) and now you are "collared" with downside protection and have $29 in your pocket if your TTCF shares get called away at $25 ($25 + $4 premium you collected minus the put option you bought)." 

FYI--yes we put that hedge on in managed accounts that now hold @2% of portfolio value in TTCH with a sell stop at $20 for the remaining shares. 

Here we are today in two looks: Today TTCH closed BELOW the 50-day of lower than average volume. In the stock world, the 50-day price moving average IS the bull/bear reality--above it, you are in a bull market, and pullbacks are to be bought. If you are trading, then either the 10-day or 20-day is your buy/sell Maginot line. 

If the stock (or index or warrant or classic sneakers for that matter) breaks that key support and does not quickly return over its 50-day, one has to surmise there are more market order sellers ("Get me out now") than market order buyers (which we identify as the "marginal buyer" of the stock who actually sets the daily price of anything in a public trading market including classic sneakers.) 

To say the least, this waterfall of red bars is now one ugly chart. In short, more market order sellers than market order buyers. 

In short, TTCF got no cavalry of market order marginal "I'm going own TTCH forever!!!" Robinhood buyers at the 50-day. One can also surmise there are a LOT of sell stops at key support levels that go hit. 

For the TR Ultra Growth portfolio, our 5% trailing sell stops on the warrants that we put on hit at $8.50 and will now but a 5% trailing sell stop on the TTCH common because TTCH is now looking like it is going meltdown to the $16 range. 

IF you are long the $20 puts and sold the $25 calls (for January 2021 or earlier dates) you have made a nice score on those positions.

Action to Take: I'd take profit on ALL remaining TTCH positions if the 50-day is not recaptured out of the gate in the morning tomorrow, You can rest assured odds are will have an opportunity to buy in the $16 range when the selling pressure is stopped with market order buy orders...again my bet is near $16. 

One reason for the infliction of financial gravity is there is NO Wall Street analyst support or valuation work yet. This is as you know is called "sponsorship" and stocks need Street sponsorship to replace early money sellers with late to the story buyers. 

Here are the rapidly approaching levels of buyer support with relative strength:

OK? 

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