Weekly 200ma and fib extensions are showing some nice confluence there.
Would not be surprised if these levels were hit around mid-Sept to mid-Oct when the next round of catalysts in Canada were coming
Pretty good track record since 2009 of getting long in August for the annual inventory build up going in to winter.
Current inventory levels (see chart here: ir.eia.gov) are close to the 5yr average so expectations for the trade will also be average.
Everyone needs to pay their rent.
$IIPR is by far the strongest name in the sector
A real lesson in trend following here
And a real lesson in who is actually making money in the sector and attracting a bid in the market
On a monthly basis, the $IWM/$SPY ratio has not been so low since Feb. 2016
As major indices are pushing all time highs and the small caps and high beta stocks will play catch up
Seems like a great summer to accumulate some small cap names for the fall run
I am not a big proponent of trendlines but this pattern is coming to a head real soon. This wedge lines up with a bunch of other stuff I am seeing, hearing, feeling.
Not sure how or when it plays out but it would seem logical to sell a bit in to the strength and buy some puts about a month out.
Been trading this setup nicely since the Q4 2018 dump
$LULU has great relative strength and is setting up a beauty bull-flag
Targets are the fib extensions off the flag
Calls in the 155+ range seem reasonable
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...
As much as I am bullish the sector and the name, this move is just a little too much too fast.
IMO the 129% move in a few sessions will need to be retraced.
The FOMO of the $STZ investment in $CGC is being felt and the "rumor" of $DEO shopping around, be it true or not will get faded eventually. Keep in mind that $TLRY is reporting tomorrow and with a mkt cap of...
Here is a comparison of $CRON; $CGC/$WEED, $APH/$APHQF and $ACB/$ACBFF
There is a pretty strong correlation going on.
I put the US tickers up because, going in to the Oct. 17, 2018 legalization date for Canada, I think that the options for $CGC and $CRON will have a lot of torque and the expiry is Oct19'18 so you can capture the event +2 days. There are Canadian...