I normally avoid wave counting in single stocks but the story that CGC has lost 1.28 Billion quarterly loss was to good to pass up! There are more losses to come as these growers over paid for “Growing Real Estate”(Greenhouse) by an insane amount! Pot production per square footage is the key and they are paying top dollar to grow pot inside.
What the black market has been doing profitable for years the legal market hasen’t even come close! to matching.
When a stock hits $55 then funds will find them too rich and they start to dump their CGC stock.
The previous bull market correction can be a great target for some support but remember this pot industry was a mania right from the start, and hysteria’s or mania’s never end well.
When markets go wild then it also draws in all the crooks that love to scam investors. I participated in one pot IPO which I sold after a 5 wave run and will stay away from all marijuana related assets.
If CGC crashes back down to $5 CAD again it would not surprise me!
In my last USD posting, I described that the USD dollar could be in a diagonal 4th wave and sure enough, the USD seems to be heading up again. It won’t be a smooth ride for a 5th wave because this is a world filled with diagonal wave structures.
I would love to see the USD breakout to new record highs even by the slimmest of margins but “Time” will have the final word!
Just inverse the chart above and it will look like the Euro which should produce another record low.
Gold and the USD have both been bullish today so we could run into more situations like this in the future.
The commercials are net short by a wide margin which does not seem to slow the USD bullish phase down any, at this time.
Not enough traffic has moved to the December time period so this is still the September contract. This is the 90-minute intraday chart, which could be showing a 4th wave rally for this month.
In the last few days, the DJIA plunged about 1000 points before it started to recover. Markets can move month to month so this bearish phase my turn by the end of September.
I will not repeat the fundamental jargon that 1000 others are doing. Nobody knows “What News” really cause the markets to head up or down and it’s impossible for the same news to happen for us to take advantage of it. Did the bearish news in late 2008 get you in a panic to get out or did all the bearish news tell you to load up?
The VIX sure has exploded but I think the VIX could still go above 40. The arrival of solar cycle 25 is the deciding factor as solar cycle 25 could produce 5 waves up in Primary degree.