Stonks Watch is a semi researched observation of arrows and their directions drawing from Shannon’s extensive knowledge of the show Billions and instructional videos on day trading. Take her advice with a grain of salt or don’t at all! Please don’t sue her, she is a blogger, not a financial advisor.
Today the arrows and the smoke from this herbal substance I’ve lit on fire and inhaled are going up! After a slow start to the morning, cannabis stocks rallied on Tuesday with wild ass percentage increases going into the twenties. According to MarketWatch, this is likely a result of Donald Trump confirming the start of the transition process for Joe Biden’s presidency and the market anticipating a stable future for cannabis.
What exactly does this mean for you, the budding arrow expert? A few things. Cannabis stocks are tricky mistresses because so much factors into their success on the ground—like, literally, the weather—as well as state and federal regulations on the sale and transport of CBD, THC, whatever, whatever. So if you’re looking to buy into something for a short (holding it for a few days to turn a quick profit) you’re in for an unpleasant surprise. Cannabis stocks are relatively cheap, I bought into cannabis a few months ago for $4 a share, but because of all the fluctuation on when, where, and how cannabis sales are legal and to what extent, I’ve watched my shares go from practically worthless to, this morning, triple what I paid to acquire them. I’ve been staring at my trading screen for about twenty minutes wondering if this is the moment to pull the trigger.
On the other hand, there’s the long game of cannabis. Buying in now could mean dropping a few more singles than you’d give your dealer on any given week. Depending on how things go it could be worth the exact same amount a year from today—or your could be a few hundred richer. For all anyone knows, this arrow up moment could be a one-day anomaly similar to what we saw with Snowflake when their IPO hit the market. But with public sentiment around cannabis riding a new high (lol) and states lining up to open dispensaries, the future is a little brighter than it has been in sales quarters passed. The risk is there but it’s a reasonable one to take if you want to dip your chip.
Either way, if the only investment you make is the kind you can pack and roll, it’s a good day to call your local neighborhood weed guy/gal and invest in their wellbeing before they’re steamrolled by Big Marijuana.