On Thursday cannabis stocks dropped after reports said that people who invest in pot stocks may be barred from entry into the United States. Pot is illegal at the federal level in the United States, but legal in some states, and if you smell of pot as you cross the border you are likely to be denied entry. But investing in the stuff will get you banned?
They do know that these companies are legal in Canada, and are traded on the Toronto Stock Exchange?
Oh well, the stocks dropped on Thursday, but then bounced back Friday, and so it was a non-event.
My plan on the pot stocks is simple: I have sold 20% of my holdings at high prices to lock in some gains. On down days I’ll redeploy that cash.
My guess is that we are in for another uptick leading into legalization on October 17, and then further strength in 2019 as more production comes on line, and demand becomes evident.
We are no longer in the first inning of this bull market, but it’s probably only the fourth or fifth inning, so I will let some of my profits run.
That’s the plan.
I have reduced my gold holdings, I am short Tesla (via puts) and I’m long Amazon (although I do covered writes every week to increase returns).
That’s the plan. More next week.
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Brief and to the point
by JDH on September 22, 2018
I’ll be brief:
Tesla is hanging in there at the $300 level. This stock is fraud on wheels, and will crash, so now would be a good time to hold your shorts.
Amazon is back down to a one month low. It’s going higher. Now would be a good time to go long.
The pot stocks had a crazy, mostly up, week. This market is going higher, but don’t forget to take profits along the way. I have sell orders in for 20% of my holdings at slightly higher than where they are trading today. That will give me a very nice profit.
More next week.