Cannabis Stocks Show Signs of Life After Posting Back to Back Green Days
Leading the Way Were These 10 Pot Stocks
As we mentioned in our previous article, something very important took place yesterday around lunchtime. Yesterday, after selling off heavily in the morning for the fourth trading day in a row, the majority of quality cannabis stocks reversed midday to post gains of 5% – 10%.
Industry bellwethers like Canopy Growth (TSX: WEED) (NYSE: CGC) and Aurora Cannabis (TSX: ACB) (NYSE: ACB) produced bullish reversal chart candles on Wednesday indicating the market could finally be ready to reverse its downtrend. Sector bulls crossed their fingers and toes overnight as they knew today’s trading results would be crucial. Pot stocks needed to extend the bounce if there was any chance of a full-on reversal.
Today couldn’t have gone any better as almost all the big-name cannabis stocks posted even larger gains than yesterday while forming large green candles that closed near the high of the day. Stocks closed up anywhere from 5% – 15% today. This is certainly great news, but we’re not out of the woods yet.
First, we’ll need negative industry news such as the vape crisis and CannTrust to blow over. As Bruce Linton said, someone needs to buy CannTrust’s assets already so we can put that bad news story to rest once and for all. The vape crisis will almost certainly blow over too. It was blown up by the media which left out key facts. Vaping pure cannabis oil or dry flower from reputable legal sources won’t cause any issues. People have been doing it for years without the recently reported wild side effects. It’s the cutting agents and pesticides used by illegal black market criminals that caused all the health issues and the labs tests back this up. As soon as everyone realizes this and the fake news outlets find another hot story to run with the whole thing will blow over.
“The U.S. Food and Drug Administration (FDA), as part of its ongoing investigation, found that ‘most of those [vape cartridge] samples with THC tested also contained significant amounts of vitamin E acetate,’ a compound that is widely reported as a material used by illicit vape formulators to dilute — or ‘cut’ — cannabis extract products, thereby stretching supply of these relatively expensive cannabis-derived inputs,” said Raymond James analyst Rahul Sarugaser.
We won’t get into all the chart technicals today regarding what needs to happen for this potential reversal to stick, we’ll cover that in a future article very soon.
For now, let’s take a look at today’s top 10 gainers and their charts. These 10 stocks will make a great watchlist for those looking for trade ideas moving forward.
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