Cannabis Tweet From Yesterday
I added aggressively to $MSOS near the close on Thursday at $4.47.
Position: Long MSOS (VL)
Examining ‘Group Stink’
* And fading it…
I don’t own and am currently short (and have been recently short C, JPM, GS, MS, UBER, NFLX, homebuilders, etc.) some of the most consensus sectors.
I am long some of the most non-consensus sectors.
Consensus Longs:
* Memory: SanDisk ($SNDK), Micron ($MU), Intel ($INTC), AMD ($AMD), Applied Materials ($AMAT) (“it’s different this time”)
* Value Tech: Adobe ($ADBE), Oracle ($ORCL), ServiceNow ($NOW) and Nvidia ($NVDA)
* Tech With Biggest Moat: Apple ($AAPL)
* Value Industrial: Caterpillar ($CAT)
* Best Overall Value: Homebuilders
* Streaming: Netflix ($NFLX)
* Autonomous: Uber ($UBER)
* Entertainment: Disney ($DIS)
* Financials: JPMorgan ($JPM), Citigroup ($C), Goldman Sachs ($GS), Morgan Stanley ($MS)
* Frontier Exposure “For The Long Haul”: SpaceX ($SPCX)
Non-Consensus Longs:
* Cannabis: $MSOS, $VRNOD, $TRLV, $GTBIF, $GLAS
* Private Equity: Apollo ($APO), Blackstone ($BX), KKR ($KKR)
* Consumer Staples: Kimberly-Clark ($KMB), PepsiCo ($PEP), Procter & Gamble ($PG)
Positions:
Long MSOS (L), VRNOD (S), TRLV (S), GTIBF (S), GLAS (S), APO (S), BX (S), KKR (S), KMB (S), PEP (S), PG (S)
Short SPCX (VS), SNDK (VS), MU (VS), INTC (VS), AMAT (VS), AMD (VS), CAT (VS)
Cannabis Strategy
Cannabis equities, along with the more the speculative corners of the market, have fallen modestly in the last two weeks, despite a slew of positive reports on (the inevitability of) rescheduling.
My strategy has been to add to MSOS ($MSOS) and to individual names daily.
Should the space continue to drop in value I could foresee taking my industry exposure to the highest level (in percentage terms) than at any time in the last five years – given my assessment of reward vs. risk.
Recognize that this is a speculative space and your risk appetite should govern your exposure.
Positions: Long MSOS et al
Morning Trades
In the premarket gaps/markups I shorted more C ($C) $145.01 and JPM ($JPM) $340.44 (both had price targets raised by UBS: C $150, JPM $384).
Adding to GRNY ($GRNY) and JOET ($JOET) shorts
Buying MSOS ($MSOS) more aggressively. And individual names.
Positions: Long MSOS L; Short GRNY M JOET S C M JPM M
Things I Did Today
Here are today’s things:
* Re-shorted indices — $SPY at $748.84 and $QQQ at $722.33.
* Added to $GRNY short at $27.87 — moved to large sized.
* Shorted $JPM $337.81 and $C at $142.90.
* Added to $MSOS at $4.77 and selected individual cannabis shares — $TRLV, $VRNOD, $GTBIF and $GLAS.
Position: Long MSOS (M), TRLV (S), VRNOD (M), GTBIF (S), GLAS (S); Short JPM (M), C (S), GRNY (L), SPY (S), QQQ (VS)
Managing Marijuana
I have once again (as I did several months ago) moved my entire position in $MSOS into individual cannabis equities — preferring to identify those specific companies that will most likely benefit from a rescheduling of medical marijuana and adult recreational use.
This allows me to weight those companies as I see appropriate and not be subject to the decision of the MSOS manager — who has a portfolio that includes not only companies that may not survive but also some larger companies that I believe to be disadvantaged in the future.
Position: Long CURLD (S), TRVL (S), GTBIF (S), TSCNDF (S), VRNOD (M), GLASF (S)
Things I Did Today
Here are today’s things:
* Added aggressively (again) to cannabis: $VRNOD at $5.35, $GLASF at $11.80, $GTBIF at $7.12, $TRLV at $8.06 and $MSOS at $4.43.
* Shorted more $JOET at $45.33.
* Repurchased consumer staples: $KMB at $105.15, $KO at $81.01, $PG at $151.37 and $PEP at $142.01.
Position: Long MSOS (L), GLASF (S), GTBIF (S), TRLV (S), KMB (S), KO (S), PG (S), PEP (S), VRNOD (S/M); Short JOET (S)
Things I Did Today
Here are today’s things:
* Covered 1/2 of my $SPCX short at $153.85.
* Covered brokerage shorts in $MS at $222.51 and $GS at $1,080.90.
* Covered tech shorts: $DRAM at $70.26, $SNDK at $2,051 and $MU at $1,099.
* Covered $IWM short at $293.33.
* Added to cannabis longs: $MSOS at $4.50, $GTBIF at $7.28, $TRLV at $8.55 and $VRNOD at $5.29.
Position: Long MSOS (L), GTBIF (S), TRLV (S), VRNOD (S); Short SPCX (VS)
Things I Did Today
Here are today’s things:
* Shorted $SPY at $749.07 and $QQQ at $743.67 — covered SPY at $744.80 and QQQ at $737.99.
* Added to $JOET short at $45.64 and $GRNY short at $27.63.
* Shorted a package of high-beta tech.
* Shorted more $MS at $227.32.
* Shorted more $IWM at $297.07.
* Added to longs $MSOS at $4.76, $MSOX at $3.00, $GTBIF at $7.55, $VRNOD at $5.55, $CURLD at $9.73 and $TRLV at $9.40.
Position: Long MSOS (L), MSOX (VS), GTBIF (S), VRNOD (S), CURLD (VS), TRLV (S); Short high-beta tech package, JOET (S), GRNY (M), MS (M), IWM (S)
Things I Did Today
Here are today’s things:
* Re-shorted $SPY at $746.68 and $QQQ at $736.53.
* Re-shorted $GRNY at $27.49 and JOET at $45.57.
* Added to cannabis longs: $MSOS ($4.69), $MSOX (new position) and GTBIF ($7.49).
* Shorted more $MS at $228.47.
Position: Long GTBIF (S), MSOS (VL), MSOX (VS); Short SPY (S), QQQ (S), GRNY (VS), JOET (VS), MS.