An MJ ETF with a strong arc provides tantalizing guidance.With all the positive catalysts supporting MJ stocks, I believe its arc provides the most potent evidence for good times ahead.
HMMJ trade ideas
Cannabis Market Reversal.So far so good.
The gains are holding, and day trade opportunities are everywhere in the cannabis show.
The blue wave has a lot to do with it. Imagine that a market with 300m people opens up and its ready to be taken....US legalization.
Technically, its good.
Good Bullish Trades!
Cannabis Stocks Crash / HMMJ Marijuana ETFHorizons Marijuana Life Sciences Index ETF (“HMMJ” or “ETF”) seeks to replicate, to the extent possible,
the performance of the North American Marijuana Index (the “Index”), net of expenses.
The Index is designed to provide exposure to the performance of a basket of North American
publicly listed life sciences companies with significant business activities in the marijuana industry.
Currently, 11 U.S. states allow the legal use of recreational marijuana, while 33 states have legalized medical cannabis.
But those numbers could soon change.
Nine states could be on track to hold key votes on some form of marijuana legalization in 2020.
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HMMJ.CA Still looking petty bearish. Now that the vote on legalization has been postponed till after the election, it's hard to find many catalysts to help get the sector out of the doldrums. Much of the bad news has been priced in, but perhaps not enough. It seems bankruptcies are being factored in based on its price action. Let's see...
Does HMMJ.CA break up or down? Here's a short term chart for Horizons Medical MJ. It's been trying to base over the last week, with some continued follow-through, albeit timid. I expect we're winding up to the #More vote scheduled for the week of September 21st. For me, it's a coin toss. The overall trend is clearly bearish, but it's certainly putting up a fight to reverse that.
Are we finally finding a bottom?I had published a previous chart on HMMJ, which for now has failed, overshooting to the downside. I have to believe so much bad news has been priced into the sector. There are a couple of positive catalysts that may provide the lift needed to gain favor with investors.
Downtrend Cooled Off => See how long it stay sideways.Cannabis stocks plummets for almost a full year.
I think that the initial hype of the Cannabis industry is over.
Those who entered the market as retail investor looking to take advantage of the hype had left probably lost quite a few $$.
With plans for Toronto to open up more stores might not help.
The daily MACD does show signs that Cannabis is recovering crossing over the weekly MACD, but it will be a while before the weekly MACD catches up and willy most likely create a sideway market for the time being.
HMMJ - Long Idea. I was asked about this stock/ETF by one of my subscribers. I like it!
Firstly it's weed, we see it in use in so may ways. Governments getting on board aging population opening up to its medical uses and recreational use of course. It's a product you buy, burn and re-order. I do not care what your opinions are on this "drug", I see opportunity here. I was in weed stocks before some with good timing some with poor timing. Time will tell:
- RSI oversold on weekly
- MACD Diverging on weekly
- Candles starting to confirm, engulfing.
- Price at a major level of support going
back to May 2017.
Let's see how high this gets.
Happy Trading!
Signs of bulishnessOn the daily we can see bullish divergence on the RSI and MACD
it is also on falling wedge as well.
There is also bullish divergence on the weekly aswell.
Hesitant to take a long term position because the fate of this play will depend largely on the earnings, which could easily become another massacre like we saw in November.
would not be a bad idea to take a quick swing trade before earnings though.
MACD CrossImpending cross on MACD weekly, I believe the bottom is in. We are now in the accumulation phase in marijuana stocks. All the big name players are heavily discounted, mostly due to overproduction in the last quarter.
This is one of the best Marijuana ETFs out there, much more stable than the concentrated growers ETFs.
