Stay ON the Weed

Given that TLRY is surging this morning after earnings and CGC quickly bouncing back from yesterday's overdue shakeout, marijuana stocks are impressing again as hot money traders are showing us they want to have more than just a one-night affair with them. 

Indeed, the MJ ETF for pot stocks reflects this, too, snapping back hard from yesterday's harsh selling, which is looking more and more like an one-day outlier. 

With this in mind, and in conjunction with materials and ags waking up, Scotts Miracle-Gro seems ripe for a relief rally. 

If you followed the marijuana theme for years now, then you know SMG was once seen as a chic, relatively safer way to play that theme, as they are a well-known and respected brand which found itself in the sweet spot for marijuana growers to consistently use their products. And the company knows it must try to pounce on this serendipity, as seen in this piece a few days ago. 

On the SMG monthly chart, below, the prior uptrend from 2016/2017 has suffered a sharp correction for most of this year. The stock is down punching its lower monthly Bollinger Band, a rare sign indeed of being particularly oversold long-term. Price is also back down to its early/mid-2016 prior highs, and I would be surprised if bulls did not put up a fight here given that the rally in pot and ag stocks is well underway.