I want to cover three reasons why you should be trading cannabis and the advantages that the Cannabis sector has over trading on the S&P 500. 

Let’s jump right in…

1. Not Dependent on Overall Market Direction 

Everything is dependent on China, tariffs, and currency wars, which means there’s no reason why you should be thinking about or looking at the SPX. 

And here’s why… 

You wake up one morning and there’s good Apple (AAPL) news or even China news and the S&P hits 3000. Then the next day there’s negative news and the S&P gets pulled back to 2859. 

And where will it go tomorrow? 

I don’t know, but what I do know is that you’re dependent on the overall market direction.

You’re playing after the market – you’re dependent on whether the S&P goes up or down and when there’s overnight news, you can’t prepare for that. 

However, you can prepare yourself for the future with cannabis due to the massive amount of short interest since no one is taking about cannabis yet. 

2. Above Average Weekly Move For Day and Swing Traders 

For example, Canopy Growth Corp (CGC) moves on average 7% weekly compared to the S&P 500, which moves less than 3% per week. 

You’re not going to have an S&P 500 Apple (AAPL), Amazon (AMZN), or Netflix (NFLX) that experiences these type of moves unless it’s earnings or major positive news. 

But by trading cannabis stocks, you have the opportunity to catch double digit gains. 

3. High Short Float Percentage with Potential for a Short Squeeze. 

Additionally, cannabis stocks have high short interest and if you’re a day trader you can take advantage of that opportunity. 

For instance, Aphria (APHA) experienced a short squeeze last Friday and increased by 40%. 

During this time in the market, Cannabis stocks are rallying higher and have gone up since the market sell off. 

Everyday, I have cannabis stocks that are up 10%, 15%, and even 20% – while my S&P 500 stocks are down by 2%-3%.

If you want an advantage and actionable trades, then start trading cannabis stocks today!

Lance Ippolito 

The Future of Wealth