Marijuana Sector Trying To Hold This Week’s Retest Of Recent Lows
April 30th, 2014
The morning of Tuesday, April 29, wasn’t much different than other recent morning. Not for the marijuana sector, unfortunately.
Many issues were slipping, many of those for a third consecutive session.
The morning of Tuesday, April 15, was worse. And not just for the marijuana sector, which had been sinking for weeks. The broader market, S&P 500 (NYSE: SPY) too, had finally reversed down hard, losing four percent in just over a week.
Four percent? Lightweight.
Broader markets and the marijuana sector hit lows into and out of that day. The sector’s weeks of selling culminated in at least a temporary bottom for many of the sector’s stocks that bounced at least briefly. Some others have continued bouncing.
Few among those issues that did start bouncing two weeks ago continued bouncing. That’s not necessarily bearish. Trying to rally too high too quickly is how tops are (were) made. What makes these brief bounces potentially bullish is that many have not been retraced entirely.
See also: A Look At 2014’s Leading Cannabis Stocks
In fact, many of the retracements back down to their two-week old lows have held at 61.8 percent — or a derivation — of the distance.
The afternoon of Tuesday, April 29, didn’t begin much differently than the morning. But its ending may be a little better. There are some signs of “nibbling” here and there. Of 50 marijuana stocks sampled in the morning, only two were positive. But 10 were positive ahead of the close. This is nothing more than anecdotal, if that, and certainly not in itself evidence of a bottom.
This week Morgan Stanley has issued guidance on GW Pharmaceuticals (NASDAQ: GWPH) specifically because of its cannabis operations. The FDA awarded GW Pharmaceuticals the so-called fast track for approval of its drug Savitex. And, the previously anti-marijuana stock stock-guru Jim Cramer talked up the stock twice this week. The sector is overdue for this much air of legitimacy.
Like the last bottoming effort, the next bottom won’t be a rising tide that lifts all boats. Some issues have since extended down to lower lows, and some only now are probing prior lows that were barely threatened two weeks ago. Are these signs of another big down leg coming? Perhaps.
Often, however, this is simply the inverse of an extended rally whose leadership is rotating into the laggards — the downside “leadership” may be overdone.
Check out the Marijuana Stock Technical Trader on Wednesday, April 30, for an expanded list of “Bottom Fishers” and “Falling Knives,” listing the potential extreme prices that might produce bigger bottoms if tested before Friday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.