news play: cannabis stocks up nicely today; anyone else swing or day trading them? I bought a lot today, it's big news re fed decrim bill passing; nice 2-day high breakouts, pun intended https://www.cnbc.com/2019/11/20/hou...inalizing-marijuana-on-the-federal-level.html https://www.reuters.com/article/us-...ll-on-federal-weed-legalization-idUSKBN1XV21R here in glorious green Colorado it's been a $6B industry https://www.cnbc.com/2019/02/12/colorado-pot-industry-sales-top-6-billion-since-adult-use-began.html funny, 2 stores account for half the city's tax revenue https://krdo.com/news/2019/10/08/mayor-says-manitou-springs-is-too-reliant-on-cannabis-money/ this is the only sector I'm bullish on, big picture I'm bearish, long SQQQ TVIX waiting for a market pullback/drop
As an esteemed colleague of mine and I have discussed somewhere in some other thread, I think pot stocks will have their day, IF it gets legalized at the federal level. The fact that most pot ETF and stocks have risen on this little blurb is proof that the interest is there. But the institutions (read: big money) won't go near it until it is LEGAL. In my view, there is only a smattering of recreational potshops around the country (in states where it is legal) because of the extreme difficulty in running an all-cash business. I cannot fathom the logistics of that. But when the banks are free to handle the cash? When you can buy pot with a credit card? Look out above!
I played ACB call options since Monday. Got out today at a huge gain. At the peak, my calls were over 485% from my entry price. I sold on the way up. So I didn't multiply my position by 485%. But still a very good day and week. Unfortunately, I don't have any calls left. I rather bank my huge gains now. Who knows. Yesterday they were up like over 100% but I didn't sell. I held to today and sold on the monster rally. Then it DOUBLED after I sold it. Just pure insanity. I mean I had some left that I sold at the highs. If I just sat on my hands for a while then sold everything at the highs then yes I would be up over 400%. But I'm ok with the gains I banked today. I also played HEXO. But I sold way way too soon before the monster rally came. But still up nicely. The entire sector is so beaten down. But this doesn't mean there can't be a pullback.
I've been surprised at the performance of pot stocks, and I doubt national legalization will turn pot into a "rocket sector". Though pot will be available "everywhere", it will be a commodity which will eventually settle-in to being a high volume business but on low margins... not an ideal investment. And as for buying pot stocks at this time.... trying to pick bottom in a falling market is hazardous business. That' said, I'm considering buying a good chunk of pot stocks after the market smash-ola when they are selling for pennies. (People like intoxicating themselves, you know.)
I'm so glad I got out of my calls. All the pot stocks took a beating today. Mostly profit taking from the huge rally yesterday and bagholders getting out.
I'm trading on technicals NOT funnymentals. It was super oversold and then rallied hard so I got in. Holding intraday or a couple of days max.
Would be awesome to go public, stand on the balcony of the NYSE, and throw out packages of rolling papers designed as your companies stock certificates.
technically it looks like a mean reversion but at significant support levels. Not a bad place to start building a position.
Remember last spring when you were going on about how they all were going to the moon and it was the best place to put your money? ....Who was it that told you they were all paper tigers and to sell the whole sector?