So the entire cannabis sector is getting absolutely hammered after the Canadian full legalization "event" on October 19, 2018. This "event" is a non-event in my view as there is/was no new information brought to the surface. All info was known ahead of time. Therefore the correction of the recent rally is fully warranted.
What I am seeing is that from the August lows of ~$24.46 on a pre-earnings dump we had a 5 wave run to a pre-Oct19'18 high of ~$59.34. I think a plausible scenario is that there is a significant ABC correction. (A) may take prices to the 0.382 retrace or perhaps the previous 2018 swing highs around $36.00. The (B) wave rally may coincide with a run to the 0.618 and the 50dma in the $46.00 range ultimately failing and giving us the (C) wave down to the 0.236 of the August to October move which could coincide with the 200dma when it occurs.
I am going to assume that $CGC $WEED will remain the leader in the sector and the other names will largely correlate in time.
What I am seeing is that from the August lows of ~$24.46 on a pre-earnings dump we had a 5 wave run to a pre-Oct19'18 high of ~$59.34. I think a plausible scenario is that there is a significant ABC correction. (A) may take prices to the 0.382 retrace or perhaps the previous 2018 swing highs around $36.00. The (B) wave rally may coincide with a run to the 0.618 and the 50dma in the $46.00 range ultimately failing and giving us the (C) wave down to the 0.236 of the August to October move which could coincide with the 200dma when it occurs.
I am going to assume that $CGC $WEED will remain the leader in the sector and the other names will largely correlate in time.
Trade active:
TArget for (A) achieved. Could have cut the short, gone long, wtv.
Trade active:
Took the long on (b) with Nov16'18 45c.
Target is somewhere b//w 44-47
Trading at ~39.00 when entered
Target is somewhere b//w 44-47
Trading at ~39.00 when entered
Trade active:
Been on the long and short side of this for weeks.
Those fib levels have worked nicely as have the 21dma and 50dma
Not sure the ABC count is/was correct - time will tell.
$CGC $WEED $CRON $ACB $APHA have been great trading vehicles
Those fib levels have worked nicely as have the 21dma and 50dma
Not sure the ABC count is/was correct - time will tell.
$CGC $WEED $CRON $ACB $APHA have been great trading vehicles
Trade closed: target reached:
All targets reached.
Longs: Check
Shorts: Check
C leg completed.
Anyone who used a perspective like this did well.
Longs: Check
Shorts: Check
C leg completed.
Anyone who used a perspective like this did well.