General Explanation of MJ
MJ is the first cannabis-focused ETF to trade in the US. The fund tracks an index of stocks across the globe that are engaged in the legal cultivation, production, marketing, or distribution of cannabis products for either medical or nonmedical purposes. The index identifies companies that legally derive more than half their revenue from cannabis-related activities. MJ also holds stocks of companies that trade or produce tobacco products, fertilizers, plant foods, pesticides, equipment for cannabis or tobacco. The fund initially did not include US companies due to its prohibition at the federal level but changed after new legislation. The index is reconstituted and rebalanced quarterly. Prior to Dec. 26, 2017, the fund was called the Tierra XP Latin America Real Estate ETF and tracked an index focused on Latin America real estate companies with the ticker LARE. Before Feb. 9, 2018, the fund traded under the ticker MJX.
Technical Perspective:
-We can see that the bearish trend From September 2018 - March 2020 has been broken. The price found its bottom on 8.67
-After breaking the descending trendline, we had a strong bullish movement towards 34.50 and, after that, a 36% correction to current levels
-We can see that we have a huge support zone between 23 and 25. If the price stays above that level, we can take it as a good signal of buyers in the zone which eventually can push the price higher.
-We consider that if the price reaches 27.5, that will be a confirmation of the bullish trend, and we expect to see a movement towards the next resistance zone at 39 - 40
-We should pay attention to 32.5 as an inner resistance zone that the price has to break before reaching our Target; that would be a smart place to protect positions.
As a final curiosity, we will leave here the current 10 top holdings of this ETF / % of each stock / ticker / shares held / Market Value USD
APHRIA INC 10.32% APHA 9,686,494 $194,407,934.58
GW PHARM-ADR 9.64% GWPH 844,511 $181,569,865.00
TILRAY INC-CL 2 7.48% TLRY 5,033,560 $140,839,008.80
CANOPY GROWTH CO 5.86% CGC 3,099,126 $110,328,885.60
GROWGENERATION CORP 5.50% GRWG 2,044,958 $103,515,773.96
CRONOS GROUP INC 5.42% CRON 8,944,741 $102,059,494.81
HEXO CORP 3.98% HEXO 9,655,518 $75,023,374.86
VILLAGE FARMS IN 3.90% VFF 4,469,612 $73,525,117.40
SCHWEITZER-MAUDU 3.66% SWM 1,446,363 $68,991,515.10
VECTOR GROUP LTD 3.54% VGR 4,639,762 $66,719,777.56
MJ is the first cannabis-focused ETF to trade in the US. The fund tracks an index of stocks across the globe that are engaged in the legal cultivation, production, marketing, or distribution of cannabis products for either medical or nonmedical purposes. The index identifies companies that legally derive more than half their revenue from cannabis-related activities. MJ also holds stocks of companies that trade or produce tobacco products, fertilizers, plant foods, pesticides, equipment for cannabis or tobacco. The fund initially did not include US companies due to its prohibition at the federal level but changed after new legislation. The index is reconstituted and rebalanced quarterly. Prior to Dec. 26, 2017, the fund was called the Tierra XP Latin America Real Estate ETF and tracked an index focused on Latin America real estate companies with the ticker LARE. Before Feb. 9, 2018, the fund traded under the ticker MJX.
Technical Perspective:
-We can see that the bearish trend From September 2018 - March 2020 has been broken. The price found its bottom on 8.67
-After breaking the descending trendline, we had a strong bullish movement towards 34.50 and, after that, a 36% correction to current levels
-We can see that we have a huge support zone between 23 and 25. If the price stays above that level, we can take it as a good signal of buyers in the zone which eventually can push the price higher.
-We consider that if the price reaches 27.5, that will be a confirmation of the bullish trend, and we expect to see a movement towards the next resistance zone at 39 - 40
-We should pay attention to 32.5 as an inner resistance zone that the price has to break before reaching our Target; that would be a smart place to protect positions.
As a final curiosity, we will leave here the current 10 top holdings of this ETF / % of each stock / ticker / shares held / Market Value USD
APHRIA INC 10.32% APHA 9,686,494 $194,407,934.58
GW PHARM-ADR 9.64% GWPH 844,511 $181,569,865.00
TILRAY INC-CL 2 7.48% TLRY 5,033,560 $140,839,008.80
CANOPY GROWTH CO 5.86% CGC 3,099,126 $110,328,885.60
GROWGENERATION CORP 5.50% GRWG 2,044,958 $103,515,773.96
CRONOS GROUP INC 5.42% CRON 8,944,741 $102,059,494.81
HEXO CORP 3.98% HEXO 9,655,518 $75,023,374.86
VILLAGE FARMS IN 3.90% VFF 4,469,612 $73,525,117.40
SCHWEITZER-MAUDU 3.66% SWM 1,446,363 $68,991,515.10
VECTOR GROUP LTD 3.54% VGR 4,639,762 $66,719,777.56