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US Stock Market: & Then Along Comes Mary! By Mish Schneider

An acquaintance of Almer claimed in an interview that "Mary" refers to marijuana, though it is unclear if Almer ever confirmed this.

However, what was confirmed in the US, is that 5 more states voted for recreational legalization of cannabis last week with Oregon, the most progressive, decriminalizing possession of all drugs.

To date, 15 states have legal recreational use of cannabis and 20 other states have legal use of medical marijuana.

Regardless of the Federal government roadblocks, the U.S. wants weed. And Ideally in a democracy, what the people want, the people will eventually get.

Therefore, the focus for today is MJ (the Alternative Harvest ETF) traded on the Archipelago Electronic Communications Network (ARCX), which allows trading of listed NYSE and NASDAQ stocks.

 

 

MJ also holds stocks of companies that trade or produce tobacco or tobacco products, or fertilizers, plant foods, pesticides or growing equipment for cannabis or tobacco. In addition, the fund can hold pharmaceutical companies that produce, market, or distribute drug products that use cannabinoids. MJ can only hold companies that are engaged in legal activities and possess all necessary permits.

MJ includes roughly 30 stocks, reconstituted, and rebalanced quarterly.

MJ holdings include companies located in U.S., Canada (Legal), and the U.K. (Medicinal Legal) and others.

 

“And then along comes Mary
And does she want to set them free, and let them see reality
From where she got her name
And will they struggle much when told that such a tender touch as hers
Will make them not the same..”

Along Comes Mary, Written by Tandyn Almer 1966. Recorded by the Association

 

Top 10 holdings:

 

Canopy Growth CGC              

Aurora Cannabis ACB

Arena Pharma ARNA

Tilray   TLRY   

GW Pharmaceutical    GWPH 

Japan Tobacco JAPAF (Over the Counter)

HEXO Corp HEXO

Aphria  APHA

Cronos Group CRON  

OrganiGram  Holdings OGI

 

On Friday November 6th, most of the cannabis stocks in the MJ basket ran up, with some experiencing huge percentage gains. Tilray closed up over 20%. Canopy growth closed up over 10%, and Aurora Cannabis rose by 50%.

MJ gapped up on the opening bell over the 200 daily moving average (green line) and at one point gained by over 14%. Ultimately, the ETF closed up over 10% but more importantly, held the 200-DMA.

MJ also held a key weekly moving average, reversing a downtrend that goes back to early 2019. Historically, the ETF, which was issued in December 2015, traded to an all-time high of $45.40 in October 2018, right after the mid-term elections in the United States that saw the House of Representatives turn blue.

Nevertheless, the Blue House did not do very much for any legislation to help the cannabis cause. Hence, that was the apex price until March 2020, when MJ hit a nadir of $8.81.

Since we like to look at daily, weekly and monthly timeframes, if you are reading this thinking you missed the boat, no worries.

A close over $15 in MJ, particularly for the month, should give it impetus to the next level of resistance at $20.00. And we see $10.00 as a wall of support.

Whether Almer’s intention was to write an homage to cannabis Mary or a gal named Mary, here we are 54 years later listening to the American citizens sing,

 

“And then along comes Mary
And does she want to see the stains, the dead remains of all the pains
She left the night before
Or will their waking eyes reflect the lies, and make them
Realize their urgent cry for sight no more…”

 

Bio

Michele 'Mish' Schneider currently serves as Director of Trading Research and Education at MarketGauge.com. She writes and produces daily market analysis in "Mish's Daily", and serves as a developer and trading mentor in several of our trading services, drawing on her 30+ Years of Trading and Teaching Experience.

Mish is a former floor trader on several New York Commodity Exchanges, including Coffee, Sugar and Cocoa NYMEX and FINEX in NYC. While on the trading floor Mish also served as a market analyst for two of the largest commodity trading firms at the time - Continental Grain, and Conti-Commodities.

Mish also wrote the best-selling finance book, Plant Your Money Tree; A Guide To Growing Your Wealth.

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

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