Comments on: MJX New Marijuana Stock ETF, Don't Let The Chart Fool You

By: Dean Drummond

Dean Drummond — Thu, 28 Dec 2017 13:11:58 +0000

Thanks for the link. I also posted a link to this ETF’s website just above the chart which has a lot of info on MJX as well as a list of the top holdings which can be viewed here: http://www.mjxetf.com//Investor-Materials/Fact-Sheet.pdf
…as well as a link to download (in .cvs / spreadsheet format) all of the holdings, which of course, are subject to change: http://www.mjxetf.com/wp-content/themes/mjx-child/cron/MJX_fund_holdings_12282017.csv
I plan to use that list of holdings to add any new stocks that I don’t currently track to my cannabis watchlist. I’m also thinking that the recent rally in the cannabis stocks will soon come to an end with a correction to follow soon (longer-term outlook still bullish).
My guess is that the launch of this fund on Tuesday has & will continue to spur additional buying in the pot stocks as investors buy the new ETF which in turn provides more cash for the ETF to buy more pot stocks. Once that initial surge of inflows subsides (could be days, weeks or possibly months), the pot stocks will be very overbought & poised for a double-digit correction, at which point I’ll be looking where & when to start adding back exposure to the sector.

By: oxienergie

oxienergie — Thu, 28 Dec 2017 09:15:16 +0000

This ETF replicates the Prime Alternative Harvest Index. But this index only contais a few (WEED, ACBFF, OGI, CARA) of the cannabis stocks that Randy monitors, so if you take a shotgun approach on the stocks covered by Randy, you will have a better coverage of the cannabis sector than this ETF.
You can find the index composition here: https://www.primeindexes.com/indexes/prime-alternative-harvest-index.html

By: murphydoc

murphydoc — Wed, 27 Dec 2017 22:49:16 +0000

In reply to Dean Drummond. If you think that these cannabis stocks will continue to do well then MJX may be a buy.

By: Dean Drummond

Dean Drummond — Wed, 27 Dec 2017 20:36:52 +0000

On a related note, although the majority of the cannabis stocks have been rallying since late October with strong momentum, it is very likely that the sharp gains in many of the pot stocks this week were either a result of (to a greater or lesser degree) of the launch of this new etf (MJX) yesterday.
Despite the extremely large gains in many of the cannabis stocks over the last couple of years, the vast majority of these stocks are extremely small companies (micro cap & nano cap stocks). As such, even a modest increase in buying (or selling) pressure can lead to swift & large gains (and losses) in many of the marijuana stocks.