CheersOrTears

Reality check comes early for Cronos

Short
NASDAQ:CRON   Cronos Group Inc. Common Share
Too much hype with no fundamental basis for price action. Tilray dampened the party this week with their dismal earnings but Cronos will send everybody to the exits come Tuesday. I'm actually surprised we got this move in the sector so soon. If you look at the Daily we have lower highs slowly turn to a retest of support. We broke two major trendlines the past two days and closed below the daily 50sma and the 19.48 pivot. A lot of the talk around these stocks is similar to what was seen on crypto pre crash "to the moon, lambo soon" etc etc. The daily charts like Tilray's look very similar to Bitcoin from November 2018. Long term the cannabis sector will be profitable but like crypto we need to see further pullback to justify a buy. look for consolidation or slight move up on Monday but I see nothing but a drop on earnings. It's always risky to hold trades going into earnings, be careful with your risk.
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