TLRY Tilray and MJ Marijuana ETF Weekly Charts

Smoke 'em if you got them. Pot stocks catch fire to the upside helped by a short-covering panic. The only long-term longs that Keystone held/holds this year were the pot stocks. Remember at the end of last year they were discussed. Positive divergence set up nicely but as sometimes happens, more bad news hit the tape about the over-supplied pot market.

Also, legislation is stalled and legalization talk has not been in the news this year, until now. Several states are ramping up potential bills to legalize recreational pot in addition to medicinal marijuana. This creates the move off the bottom and the shorts panicked. Keystone talked about this when the trades were entered it just took a few extra months for the fun to play out.

A short-seller was crying in his beer yesterday bashing Tilray saying it is a POS so that creates a -12% pullback in TLRY to begin the week; he lost his shirt. That weakness filters into the other pot stocks yesterday but the impressive rally needed a rest anyway.

Look at the massive buying volume in the MJ ETF. Wow. That graphs shows the short-sellers getting raped. If they were not attentive to their short positions, they got smoked. They lost their shirt, and pants.

The standard deviation bands squeezed in tight for MJ so you knew a huge move was coming but the squeeze does not predict direction. It was up obviously and the rocket launch was on. Positive divergence provides the jet fuel (green lines).

TLRY violates the bottom band as it forms the falling green wedge (bullish) so the middle and upper bands are on the table and price shoots higher to the upper band. Price tops out with that Tweezer Top above the top band. This week starts on the -12.6% downbeat. The middle band at 2.16 is in play because the upper band was violated.

Tilray is coming more into balance between buyers and sellers. The RSI and money flow are neggie d as the Tweezer Top printed sending price lower. As TLRY made the new high, however, the MACD and stochastics remain long and strong so after the softness for a week or two, price would be expected to elevate again for another matching or higher high.

As positive soundbites occur, such as potential legalization of pot in Ohio, the charts should pop on each happy story. Short-sellers may be prone to avoid the pot stocks now that many got burned.

Here are some of the pot stock tickers; TLRY, MJ, ACB, CRON, SNDL, VRNOF, TCNNF, GTBIF, IIPR, SMG, GRWG, CRLBF, GRWG, VFF, OGI, CURLF, CLVR, MAPS, MSOS, MJUS, TOKE, CNBS, YOLO, THCX, POTX, PSIL, WEED and DARP. Lots of investors and money people want to be involved in the world of pot. SMG is potting soil and products to grow marijuana so it usually benefits when the pot hype increases. SMG will not bounce as much as the pot stocks but in bad times, SMG would hold up better since its products help grow all plants not just pot.

Keystone had TLRY, MJ and ACB as longs this year. TLRY was exited last week taking profits. Keystone is still holding MJ and ACB long but will be looking to sell going forward; there should be another push higher as per the weekly charts.

If you missed the explosive rally, it may not be wise to chase the tickers expecting more of the same. However, for long-term plays many of the tickers above will likely increase on the long side over the next year even if the stock market tanks. Perhaps because of it. People will be drowning their troubles in booze and pot as the stock market drops and they are laid off in the pending recession. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.