Mish’s Daily: Turnaround Tuesday: Did Canna Finally Bottom?
Mish’s Daily: Turnaround Tuesday: Did Canna Finally Bottom?
Written by Michele ‘Mish’ Schneider
This story came out today about Trump’s potential policy on cannabis.
The statement by Chris Christie:
When I was asked about the election, I talked about 3 commonalities among both candidates.
- 1. Bitcoin-maybe the market perceived Trump as more bullish, but I saw bitcoin rising as the normal 6-month delay after a halving which reduces supply.
- 2. Onshoring-yet to be seen how Trump approaches this besides deportation and tariffs, but both parties have desired more production within the US.
- 3. Cannabis-I believe both parties realize that with 41 states legalizing medical cannabis at least, it is inevitable to not only reschedule it, but also start making some real money in the industry.
Therefore, I am not too surprised to see Chris Christie’s statement.
MSOS rose over 14% in today’s session.
Interestingly, the price action was inside the trading range of Monday.
So, while MSOS bounced, did it actually bottom?
Click here to see more on MSOS, plus levels for key ETF indices and sectors.
My absolute favorite trade is when I am keen on an industry or trend, and I have a chance to buy it after a huge crash a lot cheaper.
Druckenmiller said he likes to start investing when he sees a trend 12-24 months before it happens.
That’s me too.
So, if MSOS bottomed today here is what I will look for:
- 1. Strong volume-yes, both Monday on the way down and Tuesday on the way up, volume was huge
- 2. A new low then an inside day followed by a close the third day higher than the day a new low was made. We do not know this yet
- 3. A mean reversion in momentum and/or leadership- we saw one in leadership (see chart) but not in momentum.
If we can get all things to line up, Wednesday takes out Monday’s high, momentum goes to a mean reversion and the volume patterns continue to come higher than average..
A gift.
Nonetheless, always have a plan.
Educational purposes only, not official trading advice.
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Mish in the Media
Podcast Geoff and Mish They cover profit taking tips dissecting ARKK fund 11-12-24
F.A.C.E with Dale Pinkert Mish said XRT & IWM have important Breakouts just above current levels 11-08-24
Business First Market All Fired Up After the Election 11-07-24
CNA First Mish explains the challenges the Federal Reserve could face to its independence and what the US economy could look like under a second Trump administration. 11-08-24
Podcast Breakfast in Singapore The Trump Presidency-what should we look for? 11-06-24
Benzinga Pre-Market Prep Mish and Benzinga talk China, commodities, the economy, rates and the election 10-28-24
Business First AM The new thin economy 10-23-24
Geoff and Mish Podcast Geoff and Mish Walk you through how phase changes create great trading opportunities in any market condition 10-22-24
Coming Up:
November 14 NYSE TV
November 14 WealthWise with Jordan Kimmel
November 15 Maggie Lake
November 18 BNN Bloomberg
November 21 BFM Radio Malaysia
November 22 Financial Sense with Jim Pupluva
December 5-7, 2024 Money Show Master Class
Weekly: Business First AM, CMC Markets, andnew to us-stockpick.app
ETF Summary
(Pivotal means short-term bullish above that level and bearish below)
S&P 500 (SPY) Almost had a reversal top-nope-just a correction
Russell 2000 (IWM) 227 support 244 the area to clear
Dow (DIA) This DID have a reversal top-so could see a return to 225
Nasdaq (QQQ) 500 support 530 resistance
Regional banks (KRE) 65 pivotal
Semiconductors (SMH) 260 resistance 243 support
Transportation (IYT) 71 now key to hold
Biotechnology (IBB) wow-wasn’t expecting this down day-142 support
Retail (XRT) 80 cleared for a day-needs to get back above or failure
iShares iBoxx Hi Yd Cor Bond ETF (HYG) 79.50 pivotal-back below
20241113
