06Nov10:39 amEST

I'm Here for the Pot Party

There are still some question marks concerning the general election earlier this week, as the "gridlock-is-bullish" thesis rather quickly became the loved and accepted view for equities to stage their latest furious rally. Moreover, some Senate run-offs may mean that we could still get a low key blue wave, on at least some level. 

On a more definitive note, one sector which has garnered increasing support at the state and municipal levels has been pot stocks. The likes of ACB CGC CRON TLRY, even GRWG NBEV SMG, have all surged heavily and steadily this week. 

My play for a catch-up trade on the long side is GW Pharma, the roughly $3.5 billion British British pharma, known for its multiple sclerosis treatment product nabiximols (the first approved natural cannabis plant derivative). 

On the monthly chart, below, we can see GWPH having marked time sideways overall for the last five years or so, backing out some swings along the way. 

Should the pot sector, gauging the MJ ETF, continue to be one of the undisputed winners going forward as local governments become desperate for cash in a lingering pandemic world, I expect most things pot-related to lift with the tide. Note that not many stocks to begin with have pot exposure, which means the market tends to reward them even more for at least being one of the first movers. 

I may not use the herb myself, but I sure am here for the pot party if this is the type of music the stocks are going it play. 

Stock Market Recap 11/05/20 ... Weekend Overview and Analysi...

 
BackToTop
 

This website is intended for educational purposes only. | © 2020 MarketChess.com | All Rights Reserved | Website design by Saco Design | Superpowered by Site Avenger

mobile site | full site