My Synopsis of our situationPosted this on some other boards, figured why not one more board considering I ended up in Mettrum today.
In short I think we have a healthy consolidation. The interesting queston is what kind? If you look at stocks like Aurora or Supreme, they've had very similar runs as we've had in COMA over the past week. Look at both of these stocks at the end of August. Sharp rise next day rose again, then deadly fall. What happens the next day? They are back on their feet!!! They then gradually rise for a month, hit mid September and wham, major spike/crash, then... continually rise.. and whats that? wham another spike/crash.
At first I thought this crash was brutal, maybe something big, but the more I put my fear aside the more I realize... its just a shake out. Tomorrow morning people are going to be scared, but I bet by the end of the day it will be green, or a doji, or something of the sort. The context for this sector is different than in the past, legalization isn't a pipe dream, its here! Next year - starting with fireworks possibly in November. People want in, thats what this week proves. If not for shorts this stock would probably already be at $15 bucks. Hence the shorts aren't playing a long game imo. They want quick shake outs and then go long. Hell, CGC is in $5 range for institutional range and other LPs aren't far behind at all, MT in $4s, APH in $4, OGI and ACB will be flying their as soon as smoke hits the legislators. You want to be short? Ha. This is the scariest time to be short and when the longs realize its a shake out they will flood the stock and well be back to dancin.
Now tomorrow. Tomorrow really doesn't matter, but I'll predict this. Anxious people will act in the morning and its likely shorts will cover by the end of the day. Do yourself a huge favor and don't sell during the crashes. You'll get sh1t all for your shares and the bounce backs will frustrate the hell out of you. After tomorrow I think the shake out will be over and the dust will settle by next week. The shake out is a solid play, it had to happen in some ways, but like I said its Oct, there is no major lull ahead and no major short play.
You should optimize this opportunity. I suggest if you have any friends interested this will be the calm before the real storm. Rally your friends and tell them the time to buy is between now and the end of Oct. i know I have some friends and family eager but I told them to wait for the cooldown, that is happening now so I am glad I told them to wait. I willbe telling the to buy over the next couple of trading days.
So, that concludes tonights special. I hope people find this helpful and most of all, I hope it helps them make money! Get use to these shake outs. We will have a lot of them over the next year and as the gains go up faster they will only become potentially more volatile. So my friends, with that I shall bid you adieu.