MJ trade ideas
symmetrical triangleIn the following graph we can see a symmetrical triangle, this can break up or down, in this case it broke down, then we put a short, the take profit we put it with the projection that gives us the triangle and we also put the stop lost
A bounce to new resistanceGood day folks,
I think we could see a bounce in MJ and test new resistance at 24.
Thank you,
Long Weed As We Will See Unwinds In Popular ShortsGreat setup to go long weed stocks right now. This may seem counterintuitive during what looks to be a coming market selloff and fears over recession, but this is shaping up to look as a great mid-term trade.
Some Quick Thoughts...
From a chart pattern perspective, this chart is almost a perfect "v" type dip, with accelerating selloffs eventually leading to a very large short positioning and sentiment extremely negative.
The selloff has left this extremely oversold on all levels. Even if weed continues to be a shit investment, it will likely see a rebound, which is mostly what we're playing here.
As a popular short, it may outperform during a broad based market selloff. We saw many factor reversals recently, and during 2018, we saw many popular shorts actually rise during the big selloff as Hedge Fund redemptions forced funds to sell their momentum longs, and cover their momentum shorts. TSLA was a great example of this last year.
This has hit Demark 13 exhaustions on both a weekly and daily level.
Today's selloff saw this outperform popular market indexes and end in the green despite the rest of the market being taken to the woodshed. It's a decent indicator that the marginal seller is no longer here.
We are hitting the lower long term trendline in a widening pattern. These are almost always good for a bounce. Set a stop loss if you want some protection here.
Just note this is a trade. Not necessarily a long term thesis on owning weed stocks.
Pot stocks oversold - BUYBound to be a short squeeze very shortly as very over-sold. Buy on price action = big spike
MJ about to burn it UP! Buff Buff PassCollege back in session time light up the bong, Opioids gonna be harder to get, CBD on the rise.
Pattern consistent with past.
Weekly data points touching lower linear regression band, opportunity? I think so...
MJ immune to trade war, not on Chinese radar.
Cheers! Happy Trading
MJ signaling oversold conditions in the cannabis marketCannabis stocks have corrected dramatically despite strong fundamentals across the industry.
Looking at the MJ ETF gives some indication of the oversold state of the broader cannabis market. The RSI is low and the ETF is currently trading beneath its 9-day moving average. Almost every single time this has happened in the past, the ETF has bounced back.
There's every reason to be bullish on the sector and this correction has created a buying opportunity not just in ETFs but in many individual cannabis stocks as well.
$MJ Searching For A BottomI think we get a oversold bounce to $26.00 area... nice candle put in yesterday on decent volume... $23 bottom?... Cannabis 2.0 on the horizon... whether this is the bottom or not, the downside risk across the board is minimal IMO... Some of the mid-tier names have already stated to move on volume...
Buy $23.75 - Sell 26.00...Stop... $22.00
A move up to the $29.00 area would set us up for a head and shoulders...
Marijuana is getting a bounce; but risk od downside existsI hold a Long position in MJ and may purchase additional shares within the next 24 to 72 hours. I use dollar cost averaging to add to my long positions consistently when monthly cash flow is positive.
Analyzing the monthly, weekly, daily, and 4-hour charts to establish long term trend lines and important pivot points, MJ is reaching a critical juncture. We are at a strong level of support,in oversold territories, but don't let that RSI fool you, this can go significantly lower. Mid 26s is strong support, but we could see low 25s.
There are many questions about the industry that remain unresolved, and because its in its infancy, those questions will remain unanswered. However, the chart says a few things. Particularly, as seen in the weird set of lines on the weekly, we are reaching a critical point of historical support. The reality is that I see the downside of a potential trade here being about 7.5%; so I'd use a 10% hard stop. I'd expect this to bounce and head back to 31 by end of autumn.
The 1:1 risk reward doesn't seem to be worth it for trade purposes, unless you're willing to hold a potential bag or dead money for some time. For me, I will continue to dollar cost average on a regular basis for a multi-year hold.
MARIJUANA Long1. 61% Retracement
2. RSI Oversold
3. Look for MACd crossing over for entry long.
Pretty straight forward long trade fingers crossed.
Cannabis headlines - turning bullishThe Cannabis ETF (MJ -4%) is trading at at six-month low as investor hype around cannabis stocks has faded.
In a somewhat predictable sell-the-news reaction, the MJ ETF peaked when recreational cannabis went into effect last Fall after staging a massive run leading up to the highly anticipated event.
Since then, the onus has been on companies to deliver. Most of them have begun reporting enviably strong sales growth, but the euphoric valuations had priced in a generous amount of future success.
Last week, Canopy Growth (CGC) Founder Bruce Linton was ousted from his role as co-CEO. He did a great job scaling the largest cannabis company in the world, but Constellation Brands (STZ) sought a more sound operational manger for the next phase of growth at its multi-billion dollar cannabis investment.
This week, CannTrust (CTST) announced that it was non-compliant with certain regulations in Canada, resulting in millions of grams of inventory being put on hold. The stock has nearly been cut in half.
The cannabis market is still nascent and the THC and CBD markets have tremendous long-term potential, but unforeseen events are par for the course in the world of business. In hindsight, cannabis stocks were priced for perfection, so it was just a matter of time before sentiment cooled off.
Cannabis stocks have pulled back from their aggressive valuations as expectations have been set at a more reasonable level.
Headwinds in the form of regulations and capacity constraints appear to be abating as the industry starts to mature. The growth outlook remains very promising.
Despite the recent sell off, the leading (largest) cannabis companies Canopy Growth (CGC), Tilray (TLRY) and Aurora (ACB) still trade at ~20x forward revenue estimates. With the backing of Altria (MO), Cronos (CRON) is even more expensive relative to sales estimates while Aphria (APHA) trades at a discount.
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Briefing . com
MJ - Pot Stocks Coiled, ready for move up.Watching $MJ next week and some of the pot stocks, my favorites - CGC and ACB, hoping to see a strong move up.
Just a gut feeling but GLTA.
MJ Breakout Mode - Expanding TriangleMJ is the center of a large bull flag trading range and expanding triangle. Last week formed a second entry for a higher low and a potential start of a second leg up. The selling pressure down from the 38 lower high has not been strong, but the directional probability at this location is close to 50/50 with a slight bull advantage. There are still bull gaps open below, but not yet a clear and strong higher low. The bulls will need to keep these gaps open to increase the likelihood of strong bull trend resumption. More likely there will be profit taking at new highs and lows, and failed breakouts, contributing to the large expanding triangle.
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MJ Weekly AnalysisMJ formed a high 2 / wedge bull flag last week which has triggered. The bulls were able to keep the 32 gap open. However the signal bar is a small bull doji. If this week closes on its high it will increase the probability of a test above the 40 lower high and possibly a new all time high. This market is in a bull flag trading range so buying high is a riskier action than in a bull trend. If instead the bears turn the market down, they will likely get a test of the 28 bull gap where the bulls will try to form a higher low and larger high 2.
Mj trend short trend continuationIs the trend my friend in MJ?
Probably yes, and probably we will go to test again the 33.75 support, so i'm in short @ 33.55
Stop 35.17 for a few days swing.
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Medical Marijuanas ETF MJThe last candle touching the resistance is 37.50 a breakout over that we can see it at $40.00
MJ Index out of consolidation and back to uptrendLittle early yet, but MJ index may be trying to trend up again. Still believe further consolidation may be needed, but this may be the best looking sector at moment w/ most other markets looking at consolidation. (For future growth and review purposes mainly here.)
Mid-Term Prospects for POT EFT MJWeed is the future, or so they say. 2018 saw a ton of overweight equities, but they have proven to be some of the most resistant names in today's market. Therefore, it stands to reason that if names like CGC, TLRY, and CRON will continue their rise, this ETF will reflect that success. It needs to retract, but will offer a great buying opportunity in the next 1-2 weeks.
