HMMJ: Bull Market Coming To An End?

 

HMMJ soared in August. Now what?  This has all the signs of a good old fashioned bear market rally, if see this rally as part of an inverted flat.  I sure wouldn’t touch this ETF with a 100 foot pole as chasing a bull market will get you trampled. We will certainly find out if the marijuana mania will keep going. If this is a bear market rally then complete retracement back to the point of orgin will happen. Below $14 would be the magic number to beat and it would confirm that this rally was just a bear market rally.

I took some Gold/HMMJ ratio readings today which was 67.9:1. This is far from being cheap as we would need 150:1 to get oversold. Ratios are impossible to kill as it’s a mathematical connection, they can expand and compress to the extreme sides but the connection will never break. I keep about 20 ratios in a pool, and they give me real time feedback. This “Ratio Pool” is in-house data that most will never see or use, but I have been using them since I called the crash of oil in 2008.

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