I am not a pot smoking degenerate, and I in no way support this filthy industry, but someone asked me my opinion this as as trade and I like a challenge so here we go. On the left is Aurora Cannabis. On the right is the Dry Bulk Shipping ETF, which is suppose to provide exposure to the proprietary Baltic Dry Goods index provided by the London-based Baltic Exchange. The BDI is a composite of the Capesize, Panamax and Supramax Timecharter Averages and is often seen as a leading indicator for the European and world economies. I tracked the BDRY ETF as a learning experience last year I don't even think I did any posts on it and I missed the trade because I was focused on losing money in crypto.
Fundamentally ACB has some legs to the upside. People are depressed and numbing the pain of their existence with this weed. Earnings are good and now we have a cross of the 20 and 50 SMAs circled in orange. The price action for BDRY seems very similar and if we use BRDY as a guide we are in at this cross and we will be out when the 20 and 50 SMA cross ag again, but this time bearishly. Set you tradingview alerts for the 50 to cross the 20 again on ACB and you have your exit. This is a super simple moving average strategy. BUT if we get a bearish cross too soon and you are munching on losses because the everything bubble popped on you then that's the way the cookie crumbled. Own your trades, gains and losses.
If you want to add just one more level of analysis you add the trendline established at the box in a box on BDRY at the end of the consolidation and when ATR hit a new low.
So if you wanted to trade ACB the moving average strategy would be to buy when the price action starts to get close to the 20d SMA. If you are worried about having your money tied up during the consolidation period and you want to just trade the break out you would be buying while the Average True Range starts to hit some new lows.
Ultimately I expect ACB to continue legging its way down, but there is a clear case for the upside. But first, consolidation.
Fundamentally ACB has some legs to the upside. People are depressed and numbing the pain of their existence with this weed. Earnings are good and now we have a cross of the 20 and 50 SMAs circled in orange. The price action for BDRY seems very similar and if we use BRDY as a guide we are in at this cross and we will be out when the 20 and 50 SMA cross ag again, but this time bearishly. Set you tradingview alerts for the 50 to cross the 20 again on ACB and you have your exit. This is a super simple moving average strategy. BUT if we get a bearish cross too soon and you are munching on losses because the everything bubble popped on you then that's the way the cookie crumbled. Own your trades, gains and losses.
If you want to add just one more level of analysis you add the trendline established at the box in a box on BDRY at the end of the consolidation and when ATR hit a new low.
So if you wanted to trade ACB the moving average strategy would be to buy when the price action starts to get close to the 20d SMA. If you are worried about having your money tied up during the consolidation period and you want to just trade the break out you would be buying while the Average True Range starts to hit some new lows.
Ultimately I expect ACB to continue legging its way down, but there is a clear case for the upside. But first, consolidation.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion