Given all the volatility in the market, maybe it’s time to get high. Here’s your trade on Canopy Growth ($CGC) – July 22, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to talk about Canopy Growth ( NASDAQ: CGC ) today.
It’s had a heck of a move, over 16 percent, it’s a small dollar stock, $8.29. It’s had a heck of a move today. The news that I see that’s most compelling is because of a potential Harris presidency, which, frankly just the thought of that makes me want to get high. Apparently, there’s an idea that she’ll be more moderate or cool on this stuff, which is the opposite of what she was in California.
The bottom line is that this stock is increasing by more than double the average volume just today. You could see a little bit of momentum building over the last week or so, starting a week ago on Monday. I don’t know if this had anything to do with Harris and all that, I doubt it. I think it was just time for the stock to move.
It broke out here and now it’s continuing to run. This is the thing, I bought some of this today, I put it on our Active Trade Idea List because I looked at this chart and I think $10.00 is the deal, which is about a 20 percent move. I am not going to take credit for this stock. I saw it in our trading room.
Somebody mentioned it, I’ll leave his name out of the video, but somebody mentioned it, and then another one as well. I looked at this one and said, “Hmm, this one looks like it could have legs.” And so I’m giving this to you on the Free Chart side of things because the bottom line is, whether you’re a member of Stock Market Mentor or not, I want to help you make money, so hopefully this will.
But here’s the thing, on this one you’ve got to, at least the way I look at it is, you have to keep a pretty loose stop. I would be keeping a stop down below today’s intraday low of 7.34, maybe 7.33, whatever. If this move completely reverses, I don’t want to be long this stock.
So because of the distance between the high and where it is right now, that’s about 12 percent, you have to start with a small position and then build from there, whether it’s intraday or whatever. Just know what your risk is. The risk is the most important part of every trade. If you don’t know what it is you’re taking too much.
Free Chart