I'm Seeing Funny Things with Pot Stocks, Man

One would objectively think that the hot money sectors in recent months would suffer violent, unforgiving drawdowns in times of market pullbacks/corrections where the major averages sharply come in to test their respective 200-day simple moving averages.

The thinking goes that highest beta, riskiest sectors which appeared to be generous, cute piggy banks dispensing large bills, en masse, on a daily basis would undergo a metamorphosis, turning into fire-breathing monsters quickly devouring your profits and sending you underwater to fight for dear life. 

Instead, pot stocks have been cool customers.

Beyond having the stereotypical mellow, stoner disposition, what is most impressive about a name like Cronos Group, below on its daily timeframe, is a conspicuous lack of sell volume (bottom pane of chart note lack of sizable red sell volume bars) during the latest multi-week basing process.

Indeed, there has been every reason to shake, bake, and scare the living heck out of every last long as the market endured its first notable volatility in quite some time. But so far, so very good for CRON, not to mention CGC and TLRY also turning in solid sessions this morning. 

I am looking to see if this pattern persists, since all of those names are sporting strong technical setups to compliment the lack of sell volume, meaning lack of interested sellers.

As for the broad market, the Nasdaq weakness early on remains a concern, though bulls are defending its 200-day moving average, for now.