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Marijuana Stocks are surging now but did you manage to buy near the lows?
Here is a chart on MJ and my two trade alerts on Canopy (CGC) from back in Mid-August. Prices could surge higher but the current uptrend slope is quite steep right now to be maintained longer term so I am expecting a short term Trading Cycle high soon.
https://surfcity.co/2018/08/16/trade-alert-328/
https://surfcity.co/2018/08/17/trade-alert-331/
I did Surf…thanks for that heads up !
Sold half just now…using the HMMJ Chart the PO of the breakout has been met
Still going higher probably though.
I would agree longer term but we likely need a TCL with at least a 38% retrace to set a pivot and a shallower Intermediate uptrend. That is my thinking anyway.
Note that Canopy (CGC) appears to be making a lower high today and the surge in MJ is due to its 8% holding in Tilray which is its 3rd largest position.
Tilray is up almost 50% today and CGC is MJ’s top holding at 10.4%
For the uninitiated, what is a “TC high”. What % THC?
I track two primary Cycles across a number of assets (e.g. Stocks, Bonds, Crude, NatGas, USD, Gold, BitCoin, etc.). All have longer Intermediate Cycles that last around 5-6 months Low to Low. Each Intermediate Cycle is made up of shorter duration Trading Cycles that are measured in days (e.g. Stocks are typically 35-45 days, BitCoin averages 60 days low to low, etc). My chart on MJ shows two Blue up arrows showing MJ’s longer Intermediate Cycle Lows (ICLs) so I am expecting a pullback into MJ’s first Trading or Daily Cycle Low (TCL or DCL). This low should then provide a more reasonable slope than what we are currently in which is just too steep to sustain, IMO.
Thanks for the explanation. As for the % of THC, I guess you are not a user of CBD oil, derived from the marijuana plant, but that’s a subject for another time…
😉
I suggest for any Cannabis investor to rotate gradually to US names, that are valued much cheaper, additionally the future is in branded products, not in flower, but in edibles and drinks. The real winners will be the next Coca Cola or Budweiser of Cannabis. I already have 2 investments in US related names, Plus products, IPO in October and C21 Investments.
Also need to consider the supply/demand issue as supply is ramping up with a number of new market players.
Therefore better sell as flower related Canadian names as too much supply coming into market. Additionally pricing in non-branded products will be very high like -20-30%. Branded Cannabis products will NOT suffer price declines (evidence: see Colorado and other legalized US markets)
https://www.cnbc.com/video/2018/09/19/marijuana-industry-to-become-a-branded-business-aimed-at-consumers-green-organic-dutchman-ceo-says.html
WOW. That are some nasty Red Candles forming on MJ, TLRY and CGC today…
Up in smoke!
Inhaled again!