MJ heading for lowest close since Jan. 10th.

Pot has been a problematic investment since the March highs. Following today’s 3.3% drop shares of MJ(ETFMG Alternative Harvest ETF) is now down 25% over the last four months. With overhead pressure building more downside looks likely.

MJ had closed lower 12 of the last 17 weeks before bottoming on June 1st. MJ began to consolidate in a narrowing range the next day. This healthy action is giving way to a fresh down leg. The index could travel quite a bit before re entering oversold territory.

We would not rush to gain MJ exposure. A solid bottom will take some time.

No positions.