Well, it finally happened. Marijuana stocks got destroyed. Who could have seen it coming, right? In fairness, many knew they were overvalued. Today, I will walk through what I saw as they topped, rolled over, and ultimately trended significantly lower.
Combining some relatively simple technical and fundamental tools, the impending decline was a higher probability opportunity. I will walk through the sector trade, step by step.
Let's get started...
March 2019
The trade started in March of this year as I commented on March 24th:
But I didn't say this out of the blue. One