Hacky Sack Might Save the Day for This Loser

Insys Therapeutics, Inc., a top ten holding in the MJX ETF for marijuana-related stocks, is off to a strong start this morning amid a sluggish tape. 

The daily chart for INSY, below, shows price attempting to hold its 200-day moving average (yellow line) after backtesting it several times of late. In addition, the daily chart does not tell the full story.

Specifically, INSY has actually been one of the worst performers in the entire market since the summer of 2015, when most biotech techs put in multi-quarter tops. Since then, INSY has been a one-way disaster for longs, falling from a high of $46.17 to a recent low of $4.10. 

However, the resurgence of the marijuana theme as several state begin to legalize weed in various forms may be the saving grace for Insys. And INSY may very well offer up better returns than an more well-known pot stock like GWPH. 

For now, if INSY can keep holding over $10 I would consider the improvement to be still underway and worth a look on the long side.