Marijuana ETF has a Buy Signal
January 5, 2024
If the MJ etf closes above it’s 30 WEEK MA today, Friday, Jan 5, 2024, we will take a position. While this is just a technical chart setup, it offers an entry with fixed, and very limited total risk (TR) of just .5% of the accounts I manage. The stop-out level would be any WEEKLY close below the 30 WEEK MA at $3.18 and rising a little each week. Having such a close stop-out level allows us to have a large position size, and since we hold the position until a weekly close below MJ’s 30 WEEK MA, we could be in this trade for awhile as long as its working, the essence of the phrase “letting your winners run.” We won’t know if we are buying until just before the close today (Friday), in which case we might buy at the close, or even on Monday morning before 11 am or so.
