Cannabis is an industry that we are watching closely right now. It was a key theme from our weekly webinar, though it’s admittedly one that’s a bit premature and not as timely as the Alternative Energy play.
The ETFMG Alternative Harvest ETF (MJ), which is made up of marijuana and cannabis stocks, has given up over 40% of its mid-February peak. It is now starting to stabilize at a level near its former lows.
The last couple days have shown evidence of trying to bottom out, and it would merely take a move back over 21.13 to surpass this recent downtrend, allowing for an above-average bounce into late April/May.
For now, it might seem premature, but the risk/reward is starting to line up for buying dips for those interested. MJ is the ETF, while attractive stocks in the space include tickers CGC, GRWG, CURLF, TLRY.
If you have an interest in seeing timely intra-day market updates on my private twitter feed, please follow @MLNewtonAdvisors. Also, feel free to send me an email at info@newtonadvisor.com regarding how my Technical work can add alpha to your portfolio management process.
Twitter: @MarkNewtonCMT
Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
