MSOS Long with 150% Upside - Cannabis Rescheduling Catalyst
💠Catalyst: Cannabis is currently classified as a schedule I drug alongside heroin, bath salts, and synthetic opioids that kill thousands every year — all while being safer than Tylenol and legal in over half the country. Cannabis is likely to be rescheduled to a schedule III drug soon after Terry Cole is confirmed as the head of the DEA. The vote to confirm him is expected to take place...TODAY
As a schedule I drug, cannabis companies can’t deduct regular business expenses for tax purposes, have limited access to banking, must transact with customers in all cash, and US multi-state operators are unable to list on the major US exchanges.
Terry Cole will be confirmed as the new head of the DEA, and when he is confirmed, the stalled process to reschedule cannabis from a schedule I to a schedule III drug should resume. If cannabis is rescheduled, that will pave the way for further research, destigmatize it, and open the door to banking and uplisting of US multi-state operators to the major exchanges in the near future.
This trade capitalizes on the fact that investors are not positioned for reform and further positive catalysts. The worst-case scenario is priced into the MSOS ETF, and when good news on rescheduling hits the tape, that should start a NEW Bull market in the MSOS cannabis stocks.
💠Technical Setup:
Bear Market
• Multi-year bear market throughout the entire Biden administration on promises to reschedule that were never followed through on
• Capitulation when Trump won the election on the prospect of potentially another 4 years of no reform
Bearish to Bullish Technical Transition!
• LT Stage 1A Bottom Signal (Price > 50D SMA)
• ST Stage 2A Breakout (First day Price > 10D EMA and 20D SMA)
• Hourly Chart – Breaking out above Weekly Value Area
• Daily Chart – Trading above the Monthly Value Area
• Overlapping prior monthly value areas in sight!
• VPOC in sight!
• Weekly Chart – Targeting a retest of the Yearly POC
💠Trade Plan
ENTRY: $2.72 (Break above weekly value area high)
STOP: $1.97 (Below the prior all-time-low)
TARGET: 6.92 (A retest of the yearly point of control from 2024)
RISK: 27.6%
REWARD: 154.4%
R/R Multiple: 5.6X
Probability of Win: 50%
Expected Value: 63.42%
As a schedule I drug, cannabis companies can’t deduct regular business expenses for tax purposes, have limited access to banking, must transact with customers in all cash, and US multi-state operators are unable to list on the major US exchanges.
Terry Cole will be confirmed as the new head of the DEA, and when he is confirmed, the stalled process to reschedule cannabis from a schedule I to a schedule III drug should resume. If cannabis is rescheduled, that will pave the way for further research, destigmatize it, and open the door to banking and uplisting of US multi-state operators to the major exchanges in the near future.
This trade capitalizes on the fact that investors are not positioned for reform and further positive catalysts. The worst-case scenario is priced into the MSOS ETF, and when good news on rescheduling hits the tape, that should start a NEW Bull market in the MSOS cannabis stocks.
💠Technical Setup:
Bear Market
• Multi-year bear market throughout the entire Biden administration on promises to reschedule that were never followed through on
• Capitulation when Trump won the election on the prospect of potentially another 4 years of no reform
Bearish to Bullish Technical Transition!
• LT Stage 1A Bottom Signal (Price > 50D SMA)
• ST Stage 2A Breakout (First day Price > 10D EMA and 20D SMA)
• Hourly Chart – Breaking out above Weekly Value Area
• Daily Chart – Trading above the Monthly Value Area
• Overlapping prior monthly value areas in sight!
• VPOC in sight!
• Weekly Chart – Targeting a retest of the Yearly POC
💠Trade Plan
ENTRY: $2.72 (Break above weekly value area high)
STOP: $1.97 (Below the prior all-time-low)
TARGET: 6.92 (A retest of the yearly point of control from 2024)
RISK: 27.6%
REWARD: 154.4%
R/R Multiple: 5.6X
Probability of Win: 50%
Expected Value: 63.42%
Trade attivo
MSOS: The Bull Market Starting Gun? 🔫MSOS ripped +54% on Friday following news that President Trump could sign an executive order rescheduling cannabis to Schedule III as early as Monday, 12/15.
Is it too late to buy? Absolutely not. Rescheduling is just the starting gun for a true bull market.
Valuation: The underlying stocks trade at a P/S multiple between 1x and 2x—bargain basement levels compared to almost any other sector.
The Story: Institutional capital has been structurally locked out of this trade due to Schedule I restrictions and OTC listings. Rescheduling unlocks the door to further reform. As big money finally begins to accumulate in this thinly traded group, the move will likely be sustained.
Technicals: Look at the chart. Despite the surge, MSOS is still trading below its yearly value area (based on 2024 volume). On a higher timeframe, this rally hasn't even left the station yet.
Trading is a game of probabilities, not certainties. But given this setup? I’m staying the course. Good luck to all🫡
Access our tools here: tools.pristinecapital.net
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Access our tools here: tools.pristinecapital.net
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.