So Much for Four Green Days in a Row

 

Nobody expected MSOS to be green four days in a row, did they?  Of course, it would have been nice to see that kind of follow through, but instead we got a red day that completely wiped out the gains from the prior three sessions. That’s the frustrating part about trading this space, just when things start to feel constructive, the rug can get pulled out quickly. Even so, despite today’s disappointment, I still believe we are on the doorstep of an up cycle.

What bothered me most about today wasn’t just the red close, but the lack of follow-through from yesterday’s late day rally. When you see buyers step in during the final hours, you want to see that momentum carry into the next session. Instead, the market opened weak and never really recovered. That’s not what bulls want to see, especially when sentiment has finally started to shift after weeks of grinding action.

That said, the chart isn’t all bad news. If you look closely, MSOS put in a clean double bottom right at 3.89 to the penny, sitting directly on top of the gap fill area. That level clearly mattered. Buyers showed up there twice, and that tells me there is still demand lurking beneath the surface. For now, that support is intact, and as long as it holds, I’m willing to give this trade some room.

Because of that, I’m choosing to sit tight with what I have in MSOS and let things play out. Not every day needs action, and sometimes the best move is no move at all. Chopping yourself up during noisy sessions usually does more harm than good.

One adjustment I did make, however, was in TLRY. This stock has been showing too much relative weakness for my liking. Yesterday, when MSOS pushed to new highs late in the afternoon, TLRY couldn’t even get off the mat. That was a red flag. Then this morning, when we took out yesterday’s low, I sold one-third of my TLRY position. I’m not married to it. I can always add those shares back if and when I see bullish volume and real strength return.

For now, it’s a waiting game. Support has been defined, risk is clear, and patience is required. Let’s see what tomorrow brings.

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