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Scotts Miracle-Gro Company (NYSE: SMG)
Note: the chart uses
OTC: DJACF, same company
How is your lawn looking? Perhaps it looks something like mine where there are few too many weeds that need to be killed. I mean, who doesn’t appreciate a nice lawn right? I hear the word on the street is that their turf builder is number one. Need to grow that grass nice and lush and make the neighbors jealous of your lawn. Wait for a second here, we are talking about cannabis right, the other kind of grass and weed. How does Scotts fit into the picture you ask. Well let’s just say that Scotts currently makes up over 9% of the Horizons Marijuana Life Sciences Index ETF. So I could explain exactly how it fits in and why its part of this well-known marijuana ETF, but we both know we would rather dig into the weeds of the chart now.
Similar to how you might ask if Scotts is a marijuana stock or not we could ask the same at times about its chart being bullish or bearish. This is what we will focus on today; mixed signals. We addressed head and shoulders last month. An inverse head and shoulders are just the inverse of the regular. it is a bullish charting signal. On the other side, we have since seen a triple top. A triple top is another variant of the double top which we also covered last month. This is considered a bearish signal. Now we are looking at a chart that has both given us a bullish and a bearish charting signal. What do we do? If you recall, I always recommend that you pair up more than one indicator or charting technique so you are not relying on just the one. On top of this, you could wait it out and once the confirmation (the break to the upside or down occurs) you could establish your position then. I hope the path to your gains is clear unlike some of the signs we will encounter within the market at times.