Trade of the Week:
Canopy Growth Corp (CGC). You can listen to the radio show at 4pm EST time on 1490 WWPR. Feel free to call in, or catch the podcast on podomatic once it is posted. Do not forget to listen to the Henry Raines show at 5pm.
Many stocks have absolutely no China exposure and are not cyclical but have sold off with the market as a whole. Cannabis is a sector that is not going to be affected by a Trade War.
Trade Idea CGC:
Buy Market @ 44.28
Stop Loss 39.00
Options Idea: Sell the May 24th PUT, 45 Strike @ 2.20
Best in breed cannabis play trading below our buy area and the 45.0 support zone. This is purely a buy the blood in the street play and there is no reversal signal. This implies that there is more room to the downside, and 41.0-42.50 is the next level of support. Have to be willing to take some pain, but there is no reason other than the market selling off that CGC is down today.
I like this stock, it has pushed a higher high, and this is a pure contrarian trade, which implies high risk.
In order to buy the bottom of a market, you must be willing and able to step in when the chart is simply ugly. There is nothing bullish about the chart other than we are trading at a key support area, just below 45.0, which is more than a 61.8% retrace of the bullish swing.This is a Free Member article. To receive email notifications when new articles are available, click here.