Cannabis Stocks: BREAKING NEWS
Pot stocks are performing in a big way as we ride through January.
Consider this a preview of what’s next to come for pot stocks this year.
To kick off the new year I shared a number of ideas that I strongly believe will create a new wave of marijuana millions over the coming months.
Today as I look at the data, I predict we’re even closer to another major breakout.
Let’s Go to the Chart
Below is a snapshot of the North American Marijuana Index for the past six months:
As you can see in the chart, since November the index has tested an important price level a few times in the past couple of months (indicated by the red circles).
The winter sell-off was a cruel one, even for high-growth pot stocks. The space broke downward through recent support and bottomed out through December.
But a new year brought renewed bullish sentiment, and the index regained its footing. Now it’s bouncing along the same level again.
What does this mean for pot stocks moving forward?
We can’t say this recent price action indicates a breakout run absolutely. But pot stocks are clearly in a snapback phase.
As it stands it’s a 50-50 shot whether the index, and pot stocks as a whole, can beat recent resistance to the upside or will need to consolidate a bit more.
But as trading expert Greg Guenthner put it yesterday…
“We’ll need to see the bulls step up and squeeze these stocks here if we want the rally to continue.”
We’ll find out whether the bulls heeded the call to action or not in the next few weeks.
My expectation is these tail winds will force a breakout much sooner than later.
Catalysts to Watch in 2019
How will it happen? Well, let’s cut right to the chase.
The following are some of the most explosive catalysts I expect will drive pot stocks higher.
Possible Federal Legalization: On Dec. 20, President Trump signed the Agriculture Improvement Act of 2018 into law. The law legalizes one particular variant of cannabis: hemp.
The bill opens the door to legal cannabis production for hemp products. More importantly, it could lead to federal legalization of medical marijuana and even adult recreational use.
Profiting From Failure: As the marijuana industry slowly matures, there will be some companies that bite the big one. This is OK. It’s normal to see leaders take the reins as an industry matures. Amazon.com survived the dot-com bubble — Pets.com (and scores more) didn’t.
The Pot Bev Trend Grows Stronger: Sin stocks are suffering as consumer tastes change, but this means new opportunity for things like pot-infused beverages. We’ve already seen plenty of gains off this trend. When it goes mainstream watch the cash really pour in.
Trump Appoints New Attorney General: Trump’s new pick for AG is Bill Barr. Barr isn’t a big fan of pot. But he also acknowledges that it would be terrible policy to go after pot companies.
“My approach to this would be not to upset settled expectations and the reliance interests that have arisen as a result of the Cole memoranda and investments have been made,” said Barr during a confirmation hearing this week.
These are very exciting developments, and could mint a ton of brand new marijuana millionaires.
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Chief Technology Expert, Technology Profits Daily