Hey Market Pilots,
Trading can very much be a game of following the leader because as individuals, we do not have enough firepower to move the markets. This is why we want to know where the money is going and where the big institutions are positioning themselves. It’s common knowledge to look at volume as a sign of support and interest, but what does that actually look like?
How about we take a look in the cannabis sector since there was some volume going into quite a few names last week. One in particular that certainly got my attention was Village Farms International (VFF). This is a cannabis-related stock that trades about 1 – 3 million shares per day. But on 12/23/20 VFF traded nearly 9 million shares, and did it again the very next day with a little over 8 million shares. It wasn’t just volume that was up, so was price to the tune of +20% in a single day and holding solid.
We may not know what the reason is, but enough people do and they are jumping in heavily. A quick look around the sector and we can see that most cannabis names perked up last week, on volume, and are starting to come alive again. Be sure to check out other names and find which ones look best to you and add them to your watchlist.
What are the Moxie subscribers working with? We have had cbdMD (YCBD) on our list and discussed it many times in the last few weeks. I am never a fan of earnings, so I waited until after that event, which brought about a very energetic buyable dip on 12/23/20. I sent an alert out to buy YCBD first thing in the morning so we were able to catch about half of that +20% move on massive volume. A typical day has YCBD settling close to a million shares, but the day we got in had it top out at nearly 8 times that with 8 million shares.
I have no qualms about following, especially when it means I can make money in the shadows of the giants. Volume means conviction and that usually means a long runway to the upside. If you want to be alerted to opportunities like these, come join Moxie. The water is delightful.
Over and Out,
Your Profit Pilot.
If you are having trouble making money in the market or figuring out how to interpret charts, join me live on Wednesdays at 10:30 CT. I navigate the markets and answer your ticker questions in real-time. If it resonates with you, I would be thrilled to have you on the journey.