Reflecting on Pot and Crypto Stocks

Much like the crypto-currency related stocks, cannabis stocks have a cultish following which roars in unison each and every time the sector experiences a bounce. 

Of course, neither faction seems to have fully embraced the idea that many of the stocks in the pot and crypto space are shells of their former technical selves, as the likes of ACB CGC CRON NBEV TLRY were all, essentially, battered and bruised in 2019. 

However, on daily timeframes there is, indeed, the potential for base bottoms to be formed in the likes of CGC and CRON, albeit as ACB lags badly again this morning amid a sector rally. Mind you, I am still far from convinced that "pot is back," not to mention anything crypto-related, too. 

But a more sensible way to play the pot bounce may very well be Scotts Miracle-Gro, a reputable firm with a strong weekly chart coil, seen below. While not a pure play on pot, SMG has a few angles related to pot growers, providing them with tools and hydroponic supplies.

Of course, as we head into a new earnings season it is tempting to put on a quick-hitter in the likes of CGC, for example. That may be just fine. For a longer-term swing trade, though, SMG likely stands to benefit and offer a more favorable risk-to-reward profile (earnings are February 5th, though) if the pot sector rally truly has legs.