What is REALLY Happening in Cannabis? Part 1: Blood in the Streets

What is REALLY Happening in Cannabis? Part 1: Blood in the Streets

Are you a bag-holder? That’s a question that cannabis investors are increasingly asking themselves when they look in the mirror each morning.

It’s a question with two, distinct answers. One answer starts by looking at the charts.

Despite being an emerging sector with virtually unlimited commercial potential, cannabis stocks have given back all of their gains going back more than two years.


Even some well-run companies with strong management teams have seen losses in the range of 80 – 90%. More on this in Part 2.

Like the sharks that they are, short-traders have smelled the blood in the water. They have been egged on by the relentlessly negative coverage of the cannabis sector by the mainstream media.

Despite the insane price level at which the sector currently sits, the excessively large short positions in cannabis stocks are getting larger.

… short positions in seven of the better-known Canadian names have spiked higher, according to data provided by S3.

Apparently, the cannabis short traders of 2019 are oblivious to a popular market axiom.

Bulls make money.
Bears make money.
Pigs get slaughtered.

For the moment, however, the “pigs” are still cashing in. Indeed, a glance at the chart for the Horizons Medical Marijuana ETF shows about the most bearish technical signals imaginable.

(chart courtesy of Stockcharts.com)

Published at Wed, 13 Nov 2019 11:00:00 +0000

Comments are closed.