MJ Stocks Analysis

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When Bloomberg and CNBC Come Into Play
Theses two media outlets are a curse. Bloomberg and CNBC are always late to the game. When I first starting investing/trading @apl, the iPod was still kitschy, iTunes was brand new and CNBC barely covered it. By the time they came around, the stock had already run 150%.

There are usually 2 setups when these 2 get involved

1. Bloomby and CNBC are fed a story about a sector or equity, run the segment and the pros pile on to create a bubble or they slam the play In order to get a better price/scare shares from existing holders.

2. Bloomby and CNBC are fed a story so pros can dump shares on the little guys just like they did when Cramer screamed to buy buy buy @apl at 700 but then sell sell sell when the stock dropped to 400

My guess is it was scenario 1 since by the time the Bloomberg story came out MJ stocks already started the decline. Someone fed the story to Bloomberg and was ready to pounce. All it takes is a few hundred thousand shares to manipulate this and, at penny prices, that's something even I could do. Investors see the price decline or weak hands start shaking and before long, the pros are there to catch the cheapies. I've seen it done first hand 20 years ago and it still occurs today.

The volumes across the board on MJ stocks are signaling institutional investment. There is no way that the few thousands of MJ stock traders are making up for the 10s of millions of $$$ being churned in this sector.