Cannabis ETF Performs “Key Reversal”
It was a tough week for the stock market.
The big S&P 500 dropped about 1.8% during Wednesday’s trading session, helping to spur the worst start to a calendar quarter since the financial crisis of 2008.
But the story doesn’t end there…
For cannabis investors who were paying attention, Wednesday’s abysmal trading session was actually a very bullish one.
You see, cannabis stocks did something very peculiar that day.
While they started the session down alongside the rest of the stock market, cannabis stocks came alive around midday, pushing higher across the board.
For instance, while the ETFMG Alternative Harvest ETF (NYSE: MJ) was down as much as 4.4% during Wednesday’s session, it ultimately managed to end the day higher.
And many of the names we talk about in these pages actually ended Wednesday’s session much higher.
And they followed up with more upside Thursday.
Whenever you see a trampled corner of the market rally hard while everything else is getting sold off, pay attention. Mr. Market may be trying to tell you something.
Specifically, we could be seeing the first glimmers of a long-awaited rebound rally in cannabis.
It’s no secret that we’ve been in an incredibly tough market for cannabis stocks in 2019.
But all sell-offs eventually come to an end. And when they do, the subsequent uptrend often ignites on a day that looks a lot like the one pot stocks experienced on Wednesday.
In Wall Street jargon, traders call it a “key reversal day.”
Could Wednesday have been the end of the selling? It’s certainly possible, particularly since the selling elsewhere in the market only looks like a temporary correction — if the broad market can continue to push upward in 2019, it makes a rebound in cannabis at the same time much easier.
At this point, only time will tell.
But after an awful September for the cannabis stock space, it’s very promising to see cannabis stocks “waking up” and pushing higher.
I’ll keep you posted as evidence mounts.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily