Is Cannabis Finally Low Enough to Go High?

June 21, 2023

Mish's Daily

By Mish Schneider


Wednesday, we began to see a separation between what Chairman of the Fed Powell said on fighting inflation, and the inflation indicators themselves.

Food commodities, particularly grains, soared. Weather is the dominant factor as we head into the summer season.

Happy June equinox.

Oil rallied, and we hope you read the Daily yesterday on why oil could rise (and did).

Hoarding is next-as is Round 2 of Inflation. Plus, the dollar is holding, but feels vulnerable.

Furthermore, long bonds are holding.

Once we see the risk gauges we like to use from our Big View flip to risk off, even the Magnificent 7 will have a hard time.

Meanwhile, in the search for green today on the board, besides commodities, we noticed another type of green in the green.

MSOS, the ETF for U.S. Cannabis, has been left for dead.

The ETF provides exposure solely to American cannabis and hemp companies, including multi-state operators.

Interestingly, 99.64% of the basket’s holdings is the U.S. Dollar.

I checked ChatGPT to find out more about that.

It means that the ETF allocates a significant portion of its assets to holdings denominated in US dollars.

We also learned that the ETF manager might hold US dollars as a defensive position during uncertain market conditions. Cash holdings can act as a buffer against market volatility or as a safe haven asset.

This could suggest that with the horrid performance of MSOS, should the ETF increase in price and value, the dollar holdings will lessen.

The chart shows the move above the 50-DMA (blue line.)

The Real Motion chart is more intriguing.

Note how the momentum indicator (red dots) are above the 2 moving averages (blue and green).

The 50 (blue) DMA is about to cross over the 200 (green) DMA.

The red dots are also clearing the Bollinger Band.

Talk about a short float?

We will watch next moves carefully to see if Cannabis takes flight or once again, goes up in smoke.


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Mish in the Media -
All clips here

Making Money with Charles Payne Fox Business 06-19-23

CMC Markets More on Currency Pairing 06-14-23

Real Vision Daily Briefing Ash Bennington 06-13-23

Business First AM The Small Caps Canary 06-14-23

CMC Markets Day trading Futures Post CPI 06-13-23

TD Ameritrade Basic Materials Undervalued 06-12-23

BNN Bloomberg Opening Bell-What to Trade 06-12-23

One-on-One with TG Watkins Stockcharts Part 2 06-05-23

Making Money with Charles Payne 06-08-23

Fox Business Coast to Coast Neil Cavuto 06-08-23

ICW Rajeev Suri-Entire Interview with Charts 06-07-23

Coming Up:

June 22 Forex premarket show Dale Pinkert

June 23 Your Daily Five Stockcharts

June 26 Podcast FreeFX

June 27 Final Bar with Dave Keller

July 6 Yahoo Finance

July 7 TD Ameritrade

ETF Summary

S&P 500 (SPY) 440 pivotal with potential reversal-has to break under 434

Russell 2000 (IWM) 180-190 stuck

Dow (DIA) 34,000 in the Dow now pivotal

Nasdaq (QQQ) 370 target hit proceeded by some selling-360 support

Regional banks (KRE) 41.00 area the 50-DMA

Semiconductors (SMH) 150 now major support.

Transportation (IYT) 237 area the 23-month moving average

Biotechnology (IBB) 121-135 range

Retail (XRT) 62 support and if clears back over 63, optimism returns

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