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Scott Redler’s Dog Bytes: Did Cannabis Stocks Bottom?

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SPX hit a high of 4718 on Friday. It’s a bit extended and might need a few days to catch its breath. Listen up for whether Powell gets the nod because that can move the market a bit. I'd think the market would like Powell instead of Brainard.

We'll see if 4681 holds, or if they shake the tree down towards the 8 day.

Now let's dig into some of the individual names I'm watching.

TSLA was great to us from $800 all the way to $1200+ with lots of setups for cash flow. I'm short some calls from Friday so I don't mind this down open. Elon tweeted about the possibility of him selling 10% of his stock. This morning it was as low as $1130 and it’s off that. I'll wait for some price discovery before I trade it. The 8 day is $1152.

The cannabis sector has been battered and bruised all year. Most are selling for tax losses and PM's trying to get them off the books and MSOS has been very broken. Maybe Friday's news changes all of that. It did go 10% on Friday so take care chasing today. But I'd think $33.80 can happen. $30ish is Resistance #1. I started to position for the January effect, so this move can help my options.

I grabbed some GRWG as US Cannabis names woke up Friday. I did trim some and I'll hold some in case this starts a new active sequence.

Positions Disclosure as of 11/8/2021 at 8:11 a.m. ET