“Pot Stocks Ready To Take Broader Market Higher After Respite?”

“Pot Stocks Ready To Take Broader Market Higher After Respite?”

[vc_row][vc_column][vc_column_text]At the beginning of this year I mention the idea that the December carnage may have been an exogenous event and not an ominous omen. If that premise is accurate I then predicted stocks could lift in a vacuum similar in scope to the retreat, forming a V bottom. We did get the vacuum and so far the V bottom is intact as well.

The consolidation which began late Friday afternoon has been orderly and possibly forming a Bullish Flag Pattern. It is still early, but I do believe it will unfold with a break out and another leg up in the next couple of weeks, maybe sooner? Remember if the exogenous event scenario is accurate, we are still in the range of where the bottom should have formed in November. Which leaves a lot of room to run as we should have been rallying for two months, not just one.

I follow two speculative sectors searching for the degree of risk taking the market is willing to take, Bitcoin and Marijuana stocks. Both also bottomed in December, but Bitcoin has been unable to follow though. Meanwhile Marijuana is showing signs of leadership with a clean stair step pattern indicating strong accumulation, possibly institutional. This is positive for the overall market and lends to higher (pun intended) prices coming

The 10 minute chart below shows the clean accumulation stair step pattern.

More later,
Max Power                                              Reply with UNSUBCRIBE to be remove

Disclaimer: Remember everything I said could be wrong, the market always has the last word.

[/vc_column_text][vc_single_image image=”975″ alignment=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]While the daily chart depicts the bullish Flag Pattern clearly as well. A decisive break above $32 could lead the ETF back towards $40 and coincide with a break higher in the broader market?[/vc_column_text][vc_single_image image=”976″ alignment=”center”][vc_column_text]Something to keep an eye on as the current consolidation continues to unfold.

Final Thought –
“I don’t have bad handwriting, I am just using my own font”
– First Grader to Teacher

More later,
Max Power                                             

Reply with UNSUBCRIBE to be remove

Disclaimer: Remember everything I said could be wrong, the market always has the last word.

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