Bull vs Bear, Bearish signals, bullish speculation rally
A late rally in the day occurred after the congressional hearing on bank access began. The outcome of this hearing was unfortunately dubious. I think tomorrow’s action will be largely following the general market trend plus the CGC action, which could go sideways again if they cancel one another out! Be careful, enter positions wisely and be aware of all the factors moving these stocks.
Too pricey for me to enter a long position. I’m skeptically bullish and optimistically bearish, as I think the panic sell-off would be more profitable than a speculative bounce. We shall see. The short volume is less moving into tomorrow and I think the last few rallies were not actual buying pressure, but short covering and day-trading speculation. You could see this with EOD sell-offs.
Institutions are too smart to buy at these levels. It makes the day-trading bulls angry, but there is a long road ahead for marijuana legalization. I've been bearish since last week, was humbled by short-covering and am sitting on the sidelines waiting for a better setup to emerge.
Technicals:
Too pricey for me to enter a long position. I’m skeptically bullish and optimistically bearish, as I think the panic sell-off would be more profitable than a speculative bounce. We shall see. The short volume is less moving into tomorrow and I think the last few rallies were not actual buying pressure, but short covering and day-trading speculation. You could see this with EOD sell-offs.
Institutions are too smart to buy at these levels. It makes the day-trading bulls angry, but there is a long road ahead for marijuana legalization. I've been bearish since last week, was humbled by short-covering and am sitting on the sidelines waiting for a better setup to emerge.
Technicals:
- MACD below the signal line
- Bearish momentum on the histogram
- Bearish confirmation on the signal lines today
- Historically this confirmation has been false and signaled an uptrend after consolidation/correction (Sept 2018), but be cautious.
- Fib levels are roughly being followed with 20.84 resistance and 18.03 support as my current levels.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.