I would like to share some words of wisdom for anyone having doubts. Most of my knowledge of the cannabis sector comes from this guy and most of you know who he is. This is real knowledge from someone who has been there and done that. Having the right mindset is everything and that is the reason why I'm sharing this
FACTS ABOUT THE PERIOD BEFORE A MANIA
I have stated the following many times, but it bears repeating
The history of manias is illustrative of the fact that it is perfectly typical to see no real anticipation beforehand
In December 2014, depending on which stocks you examine there was either no runup whatsoever or a very slight 1 week runup into 1/1/14, which wound up being the biggest cannabis sector mania of all time, and possibly the largest sector mania the American stock market has ever seen
In August 2016, there was zero anticipatory runup before the cannabis sector went manic overnight in September 2016 for the next few months
Low volume is generally what we see before manias
And sideways to down price action
Why is that?
I can offer several major reasons
1) People who don’t study prior cannabis sector manias mistakenly assume that there is supposed to be an anticipatory runup before a major catalyst
2) When that doesn’t happen, they assume the lack of anticipatory runup is a sign that the upcoming catalyst isn’t going to result in a mania — either because the upcoming catalyst isn’t important or significant enough to cause a mania or because everybody has already bought in before the catalyst so everything is already “priced in”
Federal Hemp & CBD Legalization meets neither of these 2 criteria
It is the most significant cannabis sector catalyst of all time for Hemp & CBD stocks
It has garnered almost zero national media attention all year long — therefore, it cannot be priced in because only a tiny % of prospective investors are even aware of it
Priced-in news is also always marked by an anticipatory runup, like what we recently saw with Canadian Rec MJ sales launching in mid-October
3) The OTC market, unlike the Nasdaq or NYSE, is not a predictive market — it is a reactionary market
This is another major reason why prices and price action before both prior cannabis sector manias have not been predictive
But once the initiation catalyst (1/1/14 and December Hemp Legalization) hits, the reactionary nature of the OTC is majestic to watch
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As a result of the above, many sell at the very bottom, immediately before a cannabis sector mania — and this serves to assist in the prevention of any anticipatory runup
Don’t take my word for it
Do your own DD
Look up 5-10 cannabis stocks and see how they performed during November-December 2013 and July-August 2016 before the onset of The Winter 2014 MJ Mania and The Fall 2016 MJ Mania, respectively
