Weed
butterzone for another retraceLEAF has been rebounding since it hit a low after all time high at 24% fib. Now its in the butterzone for another retrace, especially for how fast its gone up, will make for a good buying opportunity.
Short for now, pick up between 16 and 17$
Price action critical pointWEED has been in a downfall since the bubble burst on pretty much every weed stock there is. Now it how made a consolidation pattern and is shortening its price range. In the coming days we will see where it breaks and what this will be able to tell us about possible future outcomes.
A lot of people think that bubbles are a bad thing. But they show that the interest of the general public has already peaked but historically, every bubble has been followed by another strong bull martket. This is a shortterm short and I will defenetly be going long on the marijuana industry in general when it bottoms out because post legalization run will be crazy.
WEED, Bull Open --> Short Play MiddayExpect a bullish open, from bullish market continuation on the S&P500. However, fully expecting RSI to become overbought after the bull open. S&P will cool-off, and WEED.TO will begin its sell-off.
Step 1) Ride long on the bullish continuation upon open. Look to short from of the top 3 levels as labelled on the chart. Enter when MACD shows bullish momentum slow, preferably with a crossover, and RSI in the overbought zone.
Step 2) Short from these levels, and look to cover between the .38 - .61 range. Must look to S&P500 for signals to cover. Watch MACD for slowing bearish momentum.
Always keep your eye on volume, and avoid any weak moves in either direction. Good luck! TSX:WEED
MJX; 2018 the year of legal weed!Im biased, I smoke the good kush every day, so it is only logical for me to be long good kush and those who can provide it.
a new etf was converted from latin american RE to 'alternative agroscience' (LARE became MJX) and it is already looking like it could be going parabolic to me.
Most of their holdings ( portfolios.morningstar.com ) are in canada so it isnt like AG Sessions can do much about the weed boom across the border.
gl hf and if u make a bag be sure to buy an oz of OG kush on me :)
manage your risk
much love
xoxo
sn00p
Canopy - descending channelCanopy is in descending channel, gap fills to lower trend line. $24.80 , Earnings is Feb 14th, might get a bounce. Bad news from govt about possible legalization delays and feb is not good month for sector, like 2017.
HVT, Real Marijuana With Good PotentialCompany is in the middle of building a grow op with 12000 kg potential. Bought MMJ Phytotek, an Israeli pharmacuetical venture creating a CBD based seizure medication. We all remember what happened to OWCP. Lots of news catalysts in the future. They just an closed an offering for 40 million, 20 000 000 shares priced at 1.82, so the price is a pretty nice discount. Looks like a nice entry somewhere between the 78% line and the close, depending on the price action. There was a big bid for 100 000 shares in that range yesterday. Don't think they got fully filled yet. I think the drop is done.
WEED.TO Bear Play for TodayTSX:WEED
I believe we will open with a sell-off because:
1) Key support broken on the S&P500.
2) Increased bear momentum upon close.
3) Incredibly bearish maruboza candlestick on the daily.
Looking back at our daily chart, we can draw a fib retracement from our most recent main leg down, to our low on the 5th. We see that yesterday we bounced off the .68 level. Interestingly, almost every other level has been respected as well. Look at how the chart lines up mostly noticeably with the .21, .32, .62, and .78 levels.
There's always the chance that it opens green. But, assuming bearish momentum carries forward on today's open, we can make several educated targets.
Short Target 1: Yesterday's support level.
Short Target 2: Prior support, using levels established before January's run up as well.
Short Target 3: .78 A fib extension, produced from A--->B. This represents a -10.64% move from yesterday's close, and would definitely be best case scenario, and final target for locking in profits.
ACB updateSo were completing the correction waves here. Still making nice fib bounces with today's confirmation candle. It looks like were headed for the final bottom here shortly, within the next week id say. If this happens it will shake all the weak hands that bought around 12-14$ and well get a nice bounce at 24% or 32% fib are my two buying targets (7.4$ and 5.6% cad). Well see for sell targets if these buy targets even get filled in this long setup.
ACB perfect fib bounces (speculative bubble market)As I mention in a lot of my posts, Fibonacci ratios are great for speculative and volatile markets. ACB doing the same things as WEED (more or less). From the top a retrace to 38% from the top (scary accurate) at $7.2 and looking to retrace the correction (second fib chart on the right) in correction waves anywhere around 38% (10.2) (reached already) and 62% (12.20) Target reached today, from here I believe the second correction will bring it back to around 7 or lower, mirroring slightly what is happening to WEED.
Ill be picking these stocks up nice and low before legalization.
WEED perfect fib boucesWow volatility is CRAZY!! making fib bounces within days. Not wasting any time hitting targets!
Target for WEED reached at 30$ retracing to 62% fib.
Now hopefully a short back down for the final correction wave from the ABC pattern
First target pickup is at 21 again, second is at 16$. Good luck and remember to take partial profits in case in keeps running upwards, WEED could very well keep going to 35$ but don't fomo, patience is key, it will come back down again before legalization.
WEED fib bouncingWEED bouncing perfectly off of 38% fib levels at 21$ instead of 50% (24$) like I had predicted last week. No matter, the profit margin could have been bigger but Im quite certain well see a recovery to $29.92 before another selloff before legalization.
Long then short around $30 region
Market Reversing, We Are Headed For 4-6 Month Bear MarketMaybe longer. SELL LONG TERM HOLDS, GET INTO CASH. I REPEAT, GET INTO CASH. 4 distribution days in 2 weeks, mixed with a massive interday drop. Market will get choppy, there will be a dead cat bounce, then the trend is down for awhile. Runs over for a bit. Start looking to short, not right away, just start preparing. SELL ALL HOLDINGS! GET INTO CASH
WEED - canopy growth completing C correction on dailyWEED - canopy growth completing C correction on daily
SPX Monday Bounce Play, /w 2 plans of action.SP:SPX
I am currently trading in the Canadian weed sector (WEED.TO), which have been closely following the SPX. Planning trades successfully means paying close attention to SPX, because of how closely they are correlated. We have not seen such a substantial daily price drop since September 9th, 2016. Let's compare market conditions based on RSI, MACD, and price movement.
Friday, Sept 9th, 2016:
a) Daily RSI just hit 31.94, moments from entering oversold conditions.
b) Bearish MACD, with cross below the 0-line.
c) Gap down pre-market, and a -2.46% drop, followed by +1.81% rise the following day.
d) Friday sell-off, leading into the weekend.
Friday, Feb 2nd, 2018
a) Daily RSI 46.81, following a sharp cool-off from being in the overbought zone for all of January.
b) Bearish MACD, but above the 0-line.
c) Gap down pre-market, and a -2.54% drop
d) Friday sell-off, leading into the weekend.
e) On the weekly, we have just exited overbought conditions. Next week could be our chance to rebound to the upside, on our freshly cooled-off weekly RSI.
1) What can we predict, based on these observations?
Using the daily RSI, we can see that every time it has tested the oversold line, we saw an excellent bounce to the upside. We aren't quite there yet , but could easily reach the oversold line on Monday or Tuesday, depending on market action, and we'll want to be in our positions for it.
2) Will Monday open lower, and set the scene for another week of sell offs, or will we see a bounce?
The million dollar question. I believe that Monday will open lower, based on the momentum of last week, and drive prices closer to the oversold line, before sharply pulling back either midday Monday, or Tuesday on open. This is because bulls are likely waiting for a safe entry, and bears will likely resume in control upon open. Hourly RSI is oversold, so the countdown is on. The first 30-60 minutes of weak bearish momentum, coupled with buy signals coming from the heavily oversold hourly RSI could signal to bulls to enter. I am sitting on cash, and will plan my entry on Monday based on how the market opens, with either a strong gap down and heavy momentum, or a weak open leading to brief lower lows.
3) Where's the bottom - When to enter long?
As I have stated, I believe that Monday will open lower, on low confidence early morning (bulls are waiting for safe entry), with a reasonable 0.43% decline to the .61 fib level. From there, RSI levels on the daily may finally have bottom out near the oversold line, and in combination with the .61 support levels, I expect to see our rally for the day. Psychologically speaking, a lot of players will be sitting out during Monday's open, fearing the bottom isn't in. However, as stated: a weaker open to lower lows, and the heavily oversold hourly RSI may signal to buyers that the bears are losing momentum, signaling safe entry for the bulls . That being said, I have prepared two plans of action based on the momentum of Monday's open.
Plan A - If the market opens with a weak drop to lower lows, I will be looking to enter my long positions as the market recovers at the .61 fib extension (extending from December 29th's low, to January 25th's high), at $2749.
Plan B - If the market opens down with strong momentum, I will look to the .78 fib extension level (which coincidentally, coincides with our 50-SMA), at $2715.
4) What if the .61 level doesn't hold?
Our next target is the .78 fib level at $2715, which coincidentally, coincides with our 50-SMA. If it hits this level of support, there is a very strong chance for a reversal to the upside, based on oversold RSI levels and substantial support at the 50-SMA. I will be looking for a long entry if price tests and holds above the 50-SMA. If it cuts through the 50-SMA like butter, I believe we are facing the beginning of much more downside.
WEED looking for perfect fib bouncesThese ratios seem to work extremely well in speculative and highly volatile markets as the price action is heavily influenced by psychological and impulsive decision making.
Its very possible that these ratios could play a huge factor given the current speculation of the market
WEED- that familiar BUBBLE. SHORT this monthWEED is overbought. Will correct to a healthy upward channel this month.
Long on Canopy. Strong bullish trend.We are approaching the same point as last year, canopy made major gains in November 2016 and December and then receded into a correction followed by a bull trap in February 2017 and subsequent spring-summer downward selling pressure. The reversal we saw from the summer prices was due to canopy performing and executing on their plans. The days of heavy speculation (early 2015- mid 2017) are ending and the volatility is reducing in degrees to more friendly levels, which in turn is bringing in new interest from baby boomer generation investors who seek stability and manageable growth as well as institutional investors who are more comfortable with the industry now compared to two years ago or even a year ago. Industry wide positive catalysts ( supply deals, expansion completions,mergers) , increasing institutional demand and major industry partners ( big liquor, big pharma, big tobacco) are driving the industry to new heights.
The reality is we are going to see periods of corrections/pullbacks, but as the chart indicates so far, each correction and pullback allowed for the healthy development of the overall upward trend. Personally the next two years for canopy look very promising, and we are going to see brand new 52 week highs each year.
MYMMF pennant breakout with gap up confirmationMYMMF canadian cannabis company made a small breakout yesterday evening shown by my previous graph yesterday. This morning full confirmation breakout, it gaped up on relatively higher volume through heavy resistance at 2.8$ resistance. Here would be good entry for a run up, this stock might test new all time highs in the coming weeks.
MYMMF is making a consolidation at 2.7 needs confirmationMYM Neutraceuticals making a bullish consolidation at 2.7 levels and is looking for the next big move. Notice increase volume at the bottom in an uptrend. Looking to break this resistance at 2.9. If it Gaps up and breaks pennant increased volume it could reach new all time highs.
OWCP Ready to go longThe chart for OWCP looks ready to resume the upward trend. Look for continued higher lows.
