Too many negative catalysts still, this needs time..Too many negative catalysts still looming in the near term:
1) Have we found the actual bottom? So far not alot of conviction given the magnitude of the drops in the last couple days. The Dow pushed forward briefly as high as 280 green but has already fallen back into the red. After what we've witnessed in the last few days, especially during the last trading hour yesterday, there's still WAY MORE fear than greed right now in the market system globally.
2) Senate is in process. There could easily be delays. There might not. But there easily could and this would be a definite wrecking ball to the already damaged SP. Buying before is simply gambling.
3) The whole industry was going through a correction for a reason. Not to lower the draw bridge to buy our way back up. Clearly an intermediate top is forming. Once Senate has green lighted us, then we'll resume course. But not until imo.
4) We've got a lack lustre quarter next Wednesday. No positive catalyst there. In fact, it could be a mild negative catalyst for further sellling.
5) No material news (in a news vacuum) with WEED and the sector news with other LPS have mostly been a yawn. These are still very early days. Preserving capital is the most important stance at present imo.
6) BMO deal turned out to be an ouch for WEED and the industry as a whole. We still don't know what is going to happen there.
Overall, still a few weeks out before any real convinction can start to form a bottom and reverse our direction back up. That is, for the longs. Now if your a day trader, help yourself to the volatitliy, but I definitely ain't buying. If you day trade in Canada, your tax bracket jumps another 25%, a measure to actively discourage frequent trading. So trying to make a couple bucks exposes you to another 25% of tax, no fun there either.
Gut check was a clear no buy and the above reasons are simply laying out the head check.