This story came out today about Trump’s potential policy on cannabis.
The statement by Chris Christie:
When I was asked about the election, I talked about 3 commonalities among both candidates.
- Bitcoin: Maybe the market perceived Trump as more bullish, but I saw bitcoin rising as the normal 6-month delay after a halving which reduces supply.
- Onshoring: This is yet to be seen how Trump approaches this besides deportation and tariffs, but both parties have desired more production within the US.
- Cannabis: I believe both parties realize that with 41 states legalizing medical cannabis at least, it is inevitable to not only reschedule it, but also start making some real money in the industry.
Therefore, I am not too surprised to see Chris Christie’s statement.
The marijauna and cannabis etf (MSOS) rose over 14% in today’s session.
Interestingly, the price action was inside the trading range of Monday.
So, while MSOS bounced, did it actually bottom?
Click here to see more on MSOS, plus levels for key ETF indices and sectors.
My absolute favorite trade is when I am keen on an industry or trend, and I have a chance to buy it after a huge crash a lot cheaper.
Druckenmiller said he likes to start investing when he sees a trend 12-24 months before it happens.
That’s me too.
So, if MSOS bottomed today here is what I will look for:
- Strong volume-yes, both Monday on the way down and Tuesday on the way up, volume was huge
- A new low then an inside day followed by a close the third day higher than the day a new low was made. We do not know this yet
- A mean reversion in momentum and/or leadership- we saw one in leadership (see chart) but not in momentum.
If we can get all things to line up, Wednesday takes out Monday’s high, momentum goes to a mean reversion and the volume patterns continue to come higher than average..
A gift.
Nonetheless, always have a plan.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
