$CGC $WEED ABC correction down to 200dma

22 Okt 2018

So the entire cannabis sector is getting absolutely hammered after the Canadian full legalization "event" on October 19, 2018. This "event" is a non-event in my view as there is/was no new information brought to the surface. All info was known ahead of time. Therefore the correction of the recent rally is fully warranted.

What I am seeing is that from the August lows of ~$24.46 on a pre-earnings dump we had a 5 wave run to a pre-Oct19'18 high of ~$59.34. I think a plausible scenario is that there is a significant ABC correction. (A) may take prices to the 0.382 retrace or perhaps the previous 2018 swing highs around $36.00. The (B) wave rally may coincide with a run to the 0.618 and the 50dma in the $46.00 range ultimately failing and giving us the (C) wave down to the 0.236 of the August to October move which could coincide with the 200dma when it occurs.

I am going to assume that CGC WEED will remain the leader in the sector and the other names will largely correlate in time.

23 Okt 2018

Dagangan aktif

TArget for (A) achieved. Could have cut the short, gone long, wtv.

25 Okt 2018

Dagangan aktif

Took the long on (b) with Nov16'18 45c.
Target is somewhere b//w 44-47
Trading at ~39.00 when entered

8 Nov 2018

Dagangan aktif

Been on the long and short side of this for weeks.
Those fib levels have worked nicely as have the 21dma and 50dma
Not sure the ABC count is/was correct - time will tell.
CGC WEED CRON ACB AAPHA have been great trading vehicles

15 Nov 2018

Dagangan ditutup: sasaran tercapai

All targets reached.
Longs: Check
Shorts: Check
C leg completed.
Anyone who used a perspective like this did well.