Buyers beware"Markets are in a constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected"- George Soros
Weed has been a disappointing ride for the majority of public investors and almost reminds me of the Facebook IPO. If you look at my past charts you will see I also took a crack at buying ACB @7.60 with a stop at @7.05. One of the reason I like tight stops is when I am wrong say in a buy situation and the market drops I am able to get out then re-assess. You can then wait for depreciation and buy back more shares later using remaining capital without taking any additional risk. The general public tends to hold and pray and I believe this is a huge mistake. Why pray when your money can buy more later?
After gaping up from the low of 6.21 volume increases to the high of 8.25 before sellers step in and sell into buyers forcing the market down again to form this double bottom. I believe much of the general public is still long and we will see more pain until the public begins to give up at which point buyers will take everything they sell. I am not selling short, I am standing aside and waiting to see if this plays out. If it does I expect prices to drop near the $4.00 area and sitting tight will potentially offer great rewards.
I believe the US indexes are currently in a natural correction which is not complete yet. I highly doubt ACB will get any steam until that is finished.
