STF Cronos Group INC / CRON short. Time for a cool down.
Updated
Cronos has performed great, especially today amid a minor weed stocks sell-off but the chart is showing signs of exhaustion and fundamentally it is over-priced for its sector, despite being one of the few making money.
FA
Horizons cannabis fund
HMMJ and 
MJ will begin re-balancing around September. I predict some of CRON will be sold-off to maintain weighting.
Weed stocks are all "over-priced" and the recent cannabis supply agreement in Canada may mean further government supplied products hitting the market.
TA
RSI's both show over-bought.
Big gap up followed by lower volume.
FA
Horizons cannabis fund
HMMJ and MJ will begin re-balancing around September. I predict some of CRON will be sold-off to maintain weighting.Weed stocks are all "over-priced" and the recent cannabis supply agreement in Canada may mean further government supplied products hitting the market.
TA
RSI's both show over-bought.
Big gap up followed by lower volume.
Comment
News of UK alcohol company Diageo talking to 3 Canadian cannabis companies has caused a lot of pre-market trading, expecting 
CRON to gap up to around 9.25.I am confident there will be some selling into the weekly close as the reasons for shorting still stand and I am sceptical of Diageo taking a significant stake in CRONOS at a potential PE of >1000.
Will adjust SL accordingly, R:R will now be 2:1
Bad timing for this short, considering other long trades I am working factor in possible mergers and buy-outs in the cannabis sector.
Source:
bloomberg.com/news/articles/2018-08-24/diageo-in-talks-with-three-canadian-weed-producers-bnn-says
Trade closed: stop reached
SL was hit.Bearish factors remain, but bad timing on my behalf in regards to Diageo news.
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