This is an unscheduled interim update to give you some guidelines to help you deal with the current strength—one of my readers used the word “craziness’—in marijuana stocks.
But first I need to mention that it was just two weeks ago that I sent you an update discussing the “long consolidation pattern” that characterized the charts of the big growers, Canopy (CGC), Aphria (APHQF) and Aurora (ACBFF). Some of my readers were a bit discouraged back then, and that note was sent, in part, to provide some reassurance. So the fact that it’s been just two weeks since that “bottom” means that this strength is probably not over yet.
Thus, if you’re in the mood for buying, you can buy. But you should consider using these two risk control measures:
1. Keep initial investments small and only commit more after profits grow.
2. Use stops, to minimize losses.
And if you already own marijuana stocks and are enjoying this surge, you might want to consider taking some partial profits, particularly if you’ve become overweighted in any one stock or if a stock you own isn’t keeping up with its peers.
Also, study the charts. Try to identify support and resistance levels, and then work to buy at support (like two weeks ago) and sell some at resistance.
Last but not least, I want you to know that I remain long-term bullish on the sector as a whole, and am currently working hard on the issue that will be published this Thursday, August 30.
Not only will it provide updated profiles on all 10 stocks in the latest issue, it will also include another stock or two, plus an introduction to the changes in format as we increase our publication frequency to monthly.