SLEEKSCAPE'S 2022 CANNABIS & MARIJUANA MANIA GRAND SALAMI -- PART II

[sleekscape]

The thesis will be out within the next week or so, followed shortly by the 2018 MARIJUANA MANIA GRAND SALAMI stock picks

The most well-known stocks always run first in the defrosting stages (see below), but they certainly won't run the farthest

By their very definition, bellwether stocks cannot be SALAMIs, according to the definition of a SALAMI stock:

A SALAMI stock is an undiscovered gem with tremendous upside and the potential to vastly outgain fellow stocks in the MJ sector. SALAMI stocks are identified by reverse engineering the shared specific factors amongst previous huge runners in the MJ sector thru the utilization of statistical analyses, mathematical computer simulations, Investor Psyche Analysis (IPA) and MarketMaker Analysis (MMA).


Here is a list of bellwether stocks:

OLD BELLWETHERS:
CBIS
MJNA
PHOT
GRNH
TRTC
CANN
MCIG

NEW BELLWETHERS:
MCOA
AMMJ
CNAB
(my old friends, virtually unknown before the 2016 MJ MANIA)

The projected rate of return in 2018 is as follows:
2018 GRAND SALAMI >>>> NEW BELLWETHERS >> OLD BELLWETHERS


The vast majority of MJ stocks continue to be rangebound (look at the 3 and 6 month charts) at this point in time, including many of the bellwethers

There is certainly some increase in dollar volume coming into the sector as of late, and some of that money is associated with the upcoming 2018 calendar year, but based on my calculations we are currently nowhere near the mania stages and not yet in premania -- we have exited the bear and are in defrosting mode -- this thawing is partially responsible for the recent upswing we have seen in certain stocks in the sector


12 STAGES IN THE MJ SECTOR CYCLE

Manic Mania
Strong Mania
Mediocre Mania
Hot -- premania
Warm -- premania
Lukewarm -- premania
Cool -- defrosting
Cold -- defrosting
Icy -- defrosting -- CURRENT
Colorado Bear
Canada Bear -- early November
Polar Bear


There are a few confusing factors which can easily be misinterpreted by any observer of the MJ sector that certainly can make it seem like we are already in the midst of the mania

The two I have seen mentioned the most are the November price action in several of the bellwethers and the increase in the American MJ index

Convertible debt conversions and the tapping of equity lines occurred en masse in October/November, and as a result many MJ stocks were temporarily driven down beforehand by the financiers

It is customary and expected to see rapid price rises on heavy volume after the conversion of debt or equity line transactions -- this represents the classic seesaw pattern typically seen up to several times per year in many MJ stocks -- that is the other major reason for the increased dollar volume and price action we have recently seen, particularly in the bellwethers

The second very confusing metric is the MJ index...

To put it kindly, the American MJ Index is a subpar and imprecise indicator of the MJ sector in the USA

https://marijuanaindex.com/stock-quotes/united-states-marijuana-index/

If you click on constituents, you will see 4 of the 17 tickers are actually Canadian, which is a country whose MJ stocks are presently in a manic phase, seemingly triggered directly by a catalyst -- Big alcohol taking a $200M stake in Canopy Growth on October 30th, singlehandedly legitimizing the Canadian pot sector overnight

As a result, the Canadian stocks have been absolutely flying in November

And of the 13 American pot stocks actually included in the index, only 2 are classic bellwethers -- MCIG and TRTC -- both of which are rangebound and nowhere close to manic

I recommend using my list of bellwethers above, in conjunction with the "IHUB top 50" if you want to get a better general sense of how the sector has been trading

https://investorshub.advfn.com/cannabis-stocks/


Talk to you next week,
Sleek