Watch lists offer an easy way to follow prices of any stock. And watch lists provide more than just a stock’s latest price . You can see how much is being bid by buyers and being asked by sellers.
Note when and by how much the bids and asks changed to get a feel for the best price to buy for. When the bid is $2, the ask is $4 and that last price was $2.30, then place a limit order closer to the ask than the bid.
Another way to take advantage of this information is to place your limit order for less than the current ask rather than pay the full prices of the seller. You are betting that the day’s trend will continue to decline. Sometimes you can buy for an average of the bid and ask and do well. Again, it takes a while to get a feel for this, and for when short term trends are about to reverse. And no one gets it right all the time.
Gettng Creative with Watch Lists
Your online trading accounts initially displays data on the stocks in your portfolio. Create another watch list for stocks you want to follow with the idea of buying when they near a certain point. Or to track the performance of specific sectors of the cannabis industry. I created watch lists for vertically managed MSOs with dispensaries, another for pure hemp plays
The Bad News with the Good
In today’s cannabis stock market, you will all too often see the list light up all red. I call days like this, “A Bad Day at Black Rock,” after the classic Western movie. An across the board pullback might be based on an upcoming earnings and guidance report from a major company, good or bad news about one, or no news at all. Or even worse, a rumor on an internet chat board like Buzzfeed.
So if your portfolio is all or nearly all in the red, and so are almost all other stocks, don’t worry. Use these cases to your advantage by look for stocks that are bucking the panic selling that turns the list red by rising in price rather than falling. Even better, plan ahead for these inevitable pullbacks and be ready to buy at the right price. When the board is almost all positive, watch for the stocks that are falling.
I observe the daily action in various regions with watch lists for companies that earn most of their revenue in the US, Canada and Latin America, for example. Another for the big cap companies, and other for mid- and small caps.
Sample Watch Lists
This watch list follows the top US operators that are “seed to sale” businesses who grow their own cannabis, extract CBD and sell it through their licensed dispensaries.
CRLBF (Cresco Labs)
CTNNF (Trulieve )
(HRVSF (Harvest Health)
ACRGF (Acreage Holdings)
This one enables me to follow the top companies generating most of their revenue in Colombia and other parts of Latin America.
BBRRF (Blueberries )
Watch lists report only the current day’s changes in price and percentage. For weekly and monthly analysis, log the daily numbers into a spreadsheet and average them.
Charts and Analysis
Charts provide a visual feel that proves useful for detecting trends. Switch between one day, two day, one month, etc, for the short term view. And three months and longer to get the big picture. I use charts for general trends. And I watch for certain patterns, such as the double bottom and double top. These sometimes predict when the price will shift and head in the other direction.
Charts form part of technical analysis, which some analysts use when studying a stock. But technical analysis and charts don’t know the news that is happening today or likely to occur next week.
Technical analysis is not my strong point. The Tradeview website considers all the technical factors and gives a buy, sell or hold recommendation.
Keep in mind that technical analysis and charts do not consider news about or plans of a company.
More on Investing in Cannabis Stocks
For More Information
Disclaimer: All material in this blog and its pages is provided for informational purposes only and does not constitute financial advice. The administrator, members and posters do not accept liability for your use of the posts, comments or content of this blog, which is provided on an “as is” and “as available” basis, without any representations, warranties or conditions of any kind.