Buy Alert! Top Pot-Stock Set to Spike

March 26, 2020
By Vlad Karpel

RoboStreet – March 26, 2020

Three-Day Snap Back Rally A Most Welcome Event 

Stocks continue to rally sharply on the heels of the $2 trillion fiscal stimulus package approved by the Senate this week along with the Fed’s “unlimited QE” mandate, fueling strong fund flows back into equities. The S&P hit a correction low of $2,191 this past Monday but is back to trading $2,600 level as of this writing. 

Up volume is better than 90% for the past three days, meaning the rally is very broad-based with all 11 sectors gaining. Technology is out front, as is usually the case when the market regains its footing, but what is more impressive is the snapback moves in the travel, hospitality, airlines, and specialty retail stocks. 

The reversal higher for the market is a huge win for the bulls since we can discuss where the bottom of the market is. I am turning cautiously optimistic, as the number of new cases in Italy is beginning to level off. Let’s keep everyone who is sick in the world in our thoughts and prayers.

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

The SPY was able to close two days in a row above the key $230-240 level, which is December 2018 low. I expect market (SPY) to potentially reach $260-275 level in the next one or two days and then, to retest the recent lows in the next 10 days.

However, I still expect market volatility and the five-percent daily market moves to persist.  At this point, I do believe we have set the bottom (market can overshoot support and resistance levels especially when VIX is high). I believe the worst part of the sell-off is behind us.

The market (SPY) will trade in the range between $220 and $270 levels for the next 4 weeks. Worst case, SPY can sell off to $200 level. I believe the SPY will recover back to $300 level as we approach summer the spread of the virus will slow down in Europe and the rest of the world.

Please follow key support levels on TLT ($142), GLD ($145).  As long as these support levels are intact, the market is prone for pullbacks. As long as VIX remains elevated above 50.0 the market is prone for sharp pullbacks. 

It’s a highly fluid tape for sure and is why now more than ever having our cutting-edge Tradespoon AI tools is essential to investing and trading this market. It’s so easy to get whipsawed by not have proper buy and sell points and my Stock Forecast Toolbox and Seasonal Chart tools provide 10-day to 6-month projections that are most valuable when taking into account the goals of both traders and investors. 

One sector that was completely obliterated was the cannabis sector, that had shed more than 75% as all the speculative air came out during the past year. However, this past week, the state of California declared that cannabis is an essential medical treatment, leading to the exception that all the pot distribution stores and outlets can remain open to serve that part of the population. 

In looking at the cannabis sector, in my view, there is really only one stock to own and trade – GW Pharmaceuticals (GWPH) – the clear leader in medicinal cannabis therapies with the only FDA-approved CBD-based drug to date, Epidiolex for the treatment of epilepsy. 

For the most recent quarter reported on February 25, revenue topped the consensus estimates as the company’s marijuana-derived epilepsy drug continues to grow. Revenue rose to $109.1 million from $6.6 million a year ago and $93 million in the third quarter. GW Pharma said that it sold $104.5 million of Epidiolex in the fourth quarter.

The company reported a fourth-quarter net loss of $24.9 million, which amounts to 7 cents a share, versus a loss of $71.9 million, or 20 cents a share, in the year-ago quarter. “2019 was an exceptional and transformative year for GW, led by the successful launch of Epidiolex in the U.S. and approval in Europe,” Chief Executive Justin Grover said in a statement. “We also expect 2020 to be an important year for our growing and developing product pipeline beyond Epidiolex as we build on our world leadership in cannabinoid science.

GW Pharma said in early February an application to expand the label for Epidiolex to include the treatment of seizures associated with Tuberous Sclerosis Complex. In the conference call, the company said it expects to file a similar application in Europe by the end of the first quarter. So, the GWPH story has legs and is delivering some very upbeat financial results. 

Not only are the fundamentals quite impressive for GWPH, so is the strong “A” Model Grade rating my Tradespoon Stock Forecast Toolbox is indicating for the stock. With shares of GWPH currently trading at $90, my AI indicators are placing a near-term price resistance of $115.46 assuming market conditions don’t materially deteriorate. 

A move from $90 to $115 implies a near-term gain of 27% – which is impressive in any market landscape. However, I use a variety of internal tools, when combined, provide me with a high level of conviction for buying into stocks and ETFs when volatility is elevated. Short of using AI tools, it’s almost a guessing game out there.

The way to get involved right away with my current investment portfolio and any new recommendations is to join RoboInvestor service today. Within the service, I recommend both stocks and ETFs for bullish and bearish scenarios. We leave nothing out that makes sense to employ. We trade equities, bonds, gold, commodities, and volatility so as to take full advantage of where the best opportunities lie. 

Just recently we closed out two trades in Akamai Technologies (AKAM) and the iPath S&P 500 VIX Short-Term Futures ETN (VXX) for nice profits. 

While the S&P 500 has given back all its gains and then some for the past two years, our RoboInvestor Portfolio has returned roughly 27%, with a Winnings Trades Percentage of about 87%. This is smart money management that demonstrates how well we’ve done for our members in the most difficult market since 2008. 

Take a serious look at your current investment methodology and compare its performance of level of volatility with what we’re delivering to our members at RoboInvestor. One would be hard-pressed to find another AI platform posting a performance record with that kind of consistency that makes our system so successful. 

I hope the market correction gives everyone reading this column pause to reconsider how they want to approach the market every day going forward and how they intend to accomplish their financial goals with a steady, reliable and proven system. Join RoboInvestor today and let’s put the power of AI to work in your portfolio immediately. 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

*Please note: RoboStreet is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services.  If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, MonthlyTrader, or RoboInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.

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