A lot of stocks are booming. Big tech has seemingly been on an endless uptrend, as society has become efficient to a fault. We have been struggling with this pandemic for a year now, but we're starting to see some sort of "end" on the horizon, despite a lackluster vaccine rollout in many places. Once things open up again in places hit hard by the pandemic, I think we will see a LOT of partying. People will also be burdened with enormous amounts of anxiety. Couple that with a need to let loose after a mini "dark age" and I think Marijuana will see a huge amount of demand. Universal legalization is also around the corner in the US. It should also happen quite soon in New York.
I originally had my eye on pot stocks back in 2018, but decided to purchase only crypto. This actually ended up being a lucky financial decision, because crypto has generated profit for me, while buying pot stocks would have given me sideways price action at best. Based on the sector's reaction to the lows, I think we can finally see a sustainable run in pot stocks. I bought MJ (the weed ETF) because it's protected from the volatility and uncertainty in individual stocks like TLRY or CRON. Some of those might offer great returns, but MJ's dividend payout is over 3% at the moment, which is pretty nice. I don't think this is a terrible choice for a long term investment, and I have to start somewhere. Sure, if the market falls apart, MJ could test the lows again (near $10), but I would take this as a buying opportunity. My plan is to dollar cost average.
From a technical perspective, if MJ breaks out from this horizontal resistance (pink on my chart), it can go to all-time high fairly quickly. I'm eyeing a possible rejection here as well, which could give me another buying opportunity.
I have bought twice recently, with a $19.59 average entry so far. Looking for all-time high valuations and price discovery. Let's see!
This is not financial advice. This is for personal use, speculation, and entertainment only!
-Victor Cobra
I originally had my eye on pot stocks back in 2018, but decided to purchase only crypto. This actually ended up being a lucky financial decision, because crypto has generated profit for me, while buying pot stocks would have given me sideways price action at best. Based on the sector's reaction to the lows, I think we can finally see a sustainable run in pot stocks. I bought MJ (the weed ETF) because it's protected from the volatility and uncertainty in individual stocks like TLRY or CRON. Some of those might offer great returns, but MJ's dividend payout is over 3% at the moment, which is pretty nice. I don't think this is a terrible choice for a long term investment, and I have to start somewhere. Sure, if the market falls apart, MJ could test the lows again (near $10), but I would take this as a buying opportunity. My plan is to dollar cost average.
From a technical perspective, if MJ breaks out from this horizontal resistance (pink on my chart), it can go to all-time high fairly quickly. I'm eyeing a possible rejection here as well, which could give me another buying opportunity.
I have bought twice recently, with a $19.59 average entry so far. Looking for all-time high valuations and price discovery. Let's see!
This is not financial advice. This is for personal use, speculation, and entertainment only!
-Victor Cobra
Comment:
It went up a little too fast for my liking, so I entered a massive short at the precise top. Sorry. Just kidding! It was a little overheated. The good news is, it creates more DCA buying opportunities, and as long as it generally holds above my pink support, MJ should be good for some further sustained upside.
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