Born to Run
U.S cannabis enters the sweet spot
Man, it’s been noisy, and lots happened since we last communicated on Friday.
NJ got their shit together…
The first steps of social justice followed…
AG Garland signaled that The War on Drugs is melting.
And U.S cannabis… sold off almost 10% the next morning?
But we know it didn’t stay there; in fact, by the end of yesterday’s session, U.S cannabis ETF $MSOS (which we advise / use as a proxy) looked like this on the daily:
And this on the weekly:
So… the uptrend is firmly in place, pullbacks have been on lower volume, size prints come in whenever the sector starts to uptick, and a push through those pennants…
But those are just charts. We know four primary metrics support the U.S cannabis growth story—the great American growth story, BK—and all four legs remain in place, although as mentioned Friday, the fundies aren’t as forgiving as they were last year:
Still, the stage is set for a rally *into* U.S cannabis earnings and that’s how we’re positioned. But yeah, it was a bit hairy yesterday; such is canna life.
Some charts; assume position all, clients* /board**/ sticking w the U.S.
$AYRWF: If they can execute and integrate, AYR still offering growth @ value.
$CCHWF*: BIG prints of late, beautiful flag pattern; MOAR growth @ value + CA CO
$CNPOF: cashed-up US player; JW owns 33M shares; we own a slug too; great chart.
$CRLBF: low volume p/b to ATH, putting in that flag; sneaky stealth stength yest too.
$CURLF: flagging > previous ATH; Bojo, JoBa & Co. report March 7th.
$CXXIF**: also flagging; no longer overbought.
$CWBHF: rounding bottom, Abacus will have it’s day, one day, we think.
$FFNTF*: reaching for that ATH and sure feels like she wants to get there.
$INDXF: Woman and the weed, sticky green; Cali play + takeover bait.
$GRAMF: Jay Z’s SPAC will have one less problem over that trendline
$GTBIF: Full of so much GTI I can taste it when I burp. AND I LIKE IT!
$HRVSF: that’s a nice rounded bottom; this Zona play has room.
$JUSHF: Remember that two-day bear market in Jushi? Ha, me too.
$TCNNF: all sorts of price discovery going on for this future franchise.
$TRSSF: NJ passed, J&J pre-announced to the upside; part of my five-letter FAANG.
Other names / recently listed / going through the process of price discovery:
$VRNOF (Verano) $CERAF (Parallel) $CDXX-U (Choice Consolidation)…
IMO sweet spot = window for positive headline risk (COLE Memo / SAFE / continued state adoption / M&A / CPG invasion etc) into earnings, which should be real good.
There’s also heightened tape risk; so it’s not a time to be complacent or swing at pitches out of your strike zone.
Profiting is a privilege, not a right so see all sides and do right by YOU; different strokes for different folks, at different times.
todd
PS- We’re trying Cannabis Confidential on Clubhouse. Last week we had Brady Cobb and Ben Kovler, on Monday night Boris and Ben swung by, and tmrw we’ll have three of the best cannabinoid wellness scientists we’ve ever come across. If you can join us, please do—I’ll be hosting w Rosie and Schultzy—and thanks!
