It looks like our friends over at r/wallstreetbets on Reddit are at it again.
Since January, this ragtag army of retail trading apes has roamed the exchanges, looking to squeeze short sellers wherever they can find them.
They’ve been able to maintain pressure in their first two major targets, but their attention and success outside of GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC) has been short-lived.
Now this misfit band of traders is turning their sights to cannabis meme stocks like Tilray Inc. (Nasdaq: TLRY).
Company shares have nearly doubled year to date, outperforming the wider sector and drawing attention from short sellers.
But traders rushing out to pile into this stock with dreams of squeezing it to the moon must not be looking at the same charts I am…
Back in February, Tilray had a parabolic move to the upside. That lasted for about two days and then fell right back down.
Not long after the move, the cannabis meme stock made an appearance in the “bust” slot of a February installment of “Bang, Buy, Bust” — and rightfully so.
The stock trended lower for the next three months until WallStreetBets stepped in.
What I see on Tilray’s daily chart right now is what I like to call the “Humpty Dumpty, I’m stuck in the mud and don’t know where I’m going” pattern.
Let’s be honest… The cannabis meme stock move never got going.
We did see some volume breakout, but each time it’s been met with a selloff.
And usually when you have volume to confirm a breakout like we had last week, it usually moves to the upside, but not for Tilray.
So if retail investors want to become the next marijuana millionaire, they’re going to need to look somewhere else in the meantime.
Check out my short video below and let’s talk about the cannabis meme stocks situation, and I’ll give my favorite of the four names we break down.
I have three more tickers and charts you need to see before you put a dime into another pot stock. Leave me a comment and let me know if you think the weed meme move is headed to the moon, or if you think it’ll go up in smoke… #puns
You can follow me on social media @lanceippolito on Twitter and Instagram. And as always, be sure to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video!
P.S. What if everyday traders never had to stare at a stock chart again?
So they could just place a simple trade on Tuesday morning… walk away…
That means instead of refreshing news headlines over the weekend or stressing about how the markets will open on Monday…
They’re off for a quick three-day vacation to the beach, a national park or maybe just relaxing!