The Closing Print live trading and financial blog during market hours.

Cannabis stocks are in the news as the Alternative Harvest ETF (MJ) accelerates out of Phase I it’s “accumulation” period. Institutions appear ready to start the upgrade cycle as the ETF is clearly getting bought at 52-week lows.

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Alternative Harvest – Cannabis ETF

Those investors who wish to be guarded in their approach to adding this industry group to their portfolio, can skip the stock picking and buy the ETF for the long haul. Phase II is starting. This is the markup phase as discussed in my book.

Phase I is pretty obvious. Institutions have been actively accumulating shares for their portfolios ahead of the crowd over the past 8 weeks. Volume is above average and up days have seen huge spikes in buying.

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RSI and MACD are bullish, suggesting higher prices in the short-term.

Canopy Growth – Cannabis Favorite

Canopy Growth (CGC) was discussed yesterday here, as we see potential upside unfolding in the days ahead. The first target is the 200ema.

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RSI and MACD are bullish. Volume increased markedly over the past two trading days. In addition, an obvious invested head and shoulders pattern reflects a neckline at the 21.60 (+/-) zone.

We plan to sell stock into resistance (200ema next level) and buy back shares on dips using this simple strategy.

Finally, remember this, analyst upgrades will most certainly start very soon. This industry group is so unliked that any good news should see higher prices. The lower-priced penny stocks in this group are to be avoided, as weaker hands tend to trade them.

Futures are flat.

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Happy Trading,

Vinny

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Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned. 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. 

As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends. 

These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.