Are the pot stocks still smoking? Here’s one that might light up your account next week. Check out Cronos Group ($CRON). (January 17, 2020)
CRON
I want to look at Cronos ( NASDAQ: CRON ) here today. This won’t take too long; I have covered this recently. Earlier in the week this group broke out. Most of the pot stocks had been trading sideways through the month of December; you can see here that it actually went back into November. I thought this was a lot of just tax-loss selling; not up here, this would be tax gain selling. But as the stock fell every idiot who bought the stock all the way down (if that’s you I wasn’t talking about you, of course), everyone who bought the stock all the way down by the time they get to the end of the year it’s like; Okay, I have got to book these losses, it will keep me from paying Uncle Sam any more than I need to.
Now the stocks are running up. I am looking at several of them but the one I want to feature here is a pretty easy analysis. On Wednesday the stock ran up, at one point, to a high of 8.82, somebody bought up there and now they are down about 3 percent loss, which isn’t that big of a deal.
The point is, as I mention that, that there is not a lot of supply here that the stock is going to have to chew through in order to make a new high; 3 percent is not a big deal. So even though the stock gapped up and then reversed on Thursday this was actually a little tiny consolidation and the entire range, by the way, from intraday high to intraday low was inside the prior day’s intraday high and intraday low. So you could call this kind of an inside day. Then today’s trading was also, you could even call it another inside day because the high here was lower than yesterday’s high and I think the low was within about a penny; 8.01 yesterday, $8.00 today, let’s just say $8.00.
This is a stock that is kind of resting. It is a strong stock, just getting going and it is taking a little breather. And so what do you do on Monday? Hey, you enjoy yourself because it is a market holiday. But on Tuesday it this stock breaks out above 8.80 that’s when I think your next entry is on this stock. If you already took the trade, I featured this earlier in the week, if you already took this trade and you are still in it then that is when you would add to it. But it this stock breaks above 8.80 it can get moving pretty quick and so you want to set a price alert; I would set it at 8.78 or something, or 8.75 to bring your attention to it. And then if the stock breaks out above 8.80, check volume, it needs to be on higher volume, it probably will be and that’s when you take that stock. And I would say, look for $10.00. That is kind of how I would trade this stock.
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