 What is up everybody, it's Stas here and in this video we're going to be doing an overall market update. Taking a look at the Dow Jones, the S&P 500 and the Nasdaq. We're also going to be doing a trading update talking about what I personally did today in the markets as well as some stocks and ETFs that I'm watching and looking to trade right now in the month of November in 2019. And as you guys read in the title and as you probably saw in the thumbnail as well there is a group of stocks out there that have been crushed, crushed absolutely beaten to the floor that I want to go over in this video, go over kind of what's been going on and if I was forced to pick one stock out of the group, which stock would I pick out of these MJ stocks? So if you guys enjoyed this video, feel free to go down below, hit that like button, that's how you can repay me. Also consider subscribing if you do want to see further content from me and join our StrafSmart Discord group chat as well as our StrafSmart Facebook group. Those are linked down below if you want to be further connected with our community. So let's talk about the S&P 500 very quickly here guys and I am recording this video a bit early today with about 50 minutes left in the market but as of right now it's up $1.52 up .05% so not much movement in terms of the overall up or down in terms of the day but if we zoom in a bit here to the 5 day 5 minute we can see that we actually hit an all time high today guys at $3127.64 and the fact that we're holding the 50SMA and the 180SMA heading into power hour here well we're actually already in power hour you know heading to the close of the day that is a very very good sign that the bulls are still in control here especially if we end up closing the day on a nice little upswing here maybe even hitting another all time high the fact that you know those are you know all those reasons are in place gives me the notion that we are bullish right now in the S&P and really across all the other markets as well once we look at those so you know the S&P that's what I'm looking at on this 5 day 5 minute chart if you're looking back on that hourly chart one can argue that this may see a pullback soon maybe down to that 50SMA that we were talking about in yesterday's video putting the S&P at around 3105 maybe 310 maybe a pull down of about 15 to 20 points there the RSI is a bit overbought that's one reason why I'm thinking this and honestly over the past couple of weeks we've seen it happen multiple times where we've ran up in the market got a bit overheated then ultimately sold off for a day or two before continuing the uptrend we can see multiple times that that has happened once here you know once here here you know 4 or 5 separate times over the past 3 weeks so maybe we see that pull down before either you know breaking below it which would be a bearish sign or like before holding the 50SMA as a new support at a higher low before continuing the uptrend so going to those other markets the other markets that I'm referring to here that also look bullish in my eyes still Dow Jones being one of them this one's actually down about 80 points down 0.3% right now but based on this hourly chart it's still looking very bullish right so one can argue that the Dow since it's already seeing a pull down the S&P might be following that tomorrow right that's actually kind of what I'm thinking here again going back to what I said on the S&P because the Dow is already seeing that healthy correction that we've seen over the past couple of weeks happened multiple times and the fact that we are holding that 50SMA on this hourly chart and if we go to this 5 day 5 minute you'll be able to see the consolidation there at a higher low that's a really good sign that this is simply a retracement on the Dow and it wants to continue the uptrend and if we zoom in a bit even closer on the daily chart here you can see that it's a very clear bottom and we're starting to gap up here heading into the last 45 minutes here of the session which again if we close very high like this you know on a nice high note that's going to be bullish leading me to believe that tomorrow could be a green day at least for the Dow Jones here so that's kind of what I'm looking at on the Dow it's similar to the S&P in a sense but it's already pulled down while the S&P hasn't quite yet done that right but we'll see if it does do it over these next couple of days the NASDAQ right now guys doing the best out of the three up 22 points up a quarter of a percent here 0.25 or 0.26 to be exact and if we zoom a bit closer here to the hourly chart you know on the NASDAQ we can see pull down occurred held that 50 SMA at a higher low now we're continuing the uptrend this is a really good sign in my personal opinion that this already pulled down now we may be going up even further and ultimately hitting another all-time high which would be anything above 83.79 so that's kind of what I'm seeing here guys especially since it's already seen it's pulled down and if we go back to that hourly chart you can see it's really bullish based on all these time frames you know 5-day 5-minute hourly chart and on the 4-hour chart as well so now let's talk about what I personally did today in the markets and a couple of stocks that I'm involved with right now so in terms of day trading today I didn't really do anything guys I'm simply riding my swing trades that I've been buying here over the past couple of days and some of those swing trades include PayPal, ticker symbol, PYPL started buying this one in the 102-103 range last week this is one that I've been eyeing up for a while now with a target to sell at about 110 bucks maybe take some more profits at about 114 and probably get completely out of the position if we get up to 117 bucks another stock that I'm currently involved with is Chipotle Mexican Grill, ticker symbol, CMG started buying into this one I believe in the 750s before we broke above this 50 SMA now I'm planning on adding a bit more didn't pull the trigger today but I'm looking to add some more to this one you know as we get closer to that 180 SMA which is at about 800 bucks where ultimately I'm planning to sell out of most of my position and probably get out completely at about 835 bucks per share if we do get to that resistance level another stock that I'm in is McDonald's MCD pretty flat on this one in at about 193 bucks Shopify, I bought this one yesterday a little down on my position but I'm still in with an initial position and looking to add more if we do end up breaking and holding above $325 per share so if I'm remembering correctly guys that's pretty much what I'm in right now 5, 6 swing trades and day trading not anything today I'm just looking to really capitalize on these swings over these next couple of days and day trade when the opportunity presents itself so now let's get into the stocks that have been absolutely hammered and as you guys saw on the thumbnail and you can see it on the screen right now on my watch list these have been the MJ stocks and we're using MJ as a code word here because I don't want to get demonetized from YouTube very strict policy surrounding drugs and all that type of stuff which is what MJ is at the end of the day so MJ, these stocks they've been crushed we have Tilray here and you can see pretty much based on the strength meter here on thinkorswim all of these are down trending Tilray, OGI, NBEV although this is not really a pure play MJ stock, it's been crushed either way Kronos has been demolished CGC has been crushed 52 down to 13 bucks guys this is carnage this is blood in the streets of these MJ companies Aphria down so much probably actually this is probably the best performing one although it's been crushed from 10 to 3 bucks and that's saying something right you know half of these have been crushed divided by 5 or 6 while this one's been divided by about 3 in terms of what its price was months ago compared to what it's now you know ACB is one of those that's been divided by 5, 10 dollars to 2 dollars per share in the span of 6 months that is insane so what's been causing the blood in the streets here because we know that in 2014, 15, 16 up to 2018 Marijuana or MJ stocks don't censor me YouTube they've been on fire they were on fire from that point but ever since really last year up until now these stocks have been crushed and I did a bunch of research guys you know took a bunch of notes so if you enjoy and find value in what I'm about to share with you all hit that like button so really guys there's an oversupply of MJ right now due to an insufficient amount of locations to actually sell the product and we've been seeing a lot of news surrounding Canada which is it's legalized in Canada since 2018 we've been seeing news that they don't have enough dispensaries out there they have a lot of product but not enough dispensaries to sell to people and what's this doing this is actually decreasing the price of the MJ and squeezing those gross margins squeezing that beautiful old profit that we all like to see right another thing about the MJ industry right now is the rollout of cannabis 2.0 and cannabis 2.0 guys what this is it's pretty much a launch of a bunch of new products including edibles, vapes infused beverages THC infused beverages and this has been delayed really for a while now until it's released which is going to be in a month here in the middle of December so over these past couple of months you know cannabis 2.0 it's been pushed back but a positive thing that we can draw from this is in about four months from now I believe is when we'll get the earnings from this launch of cannabis 2.0 hopefully this brings a lot of new revenue to the companies and honestly a boost in the sentiment surrounding the MJ companies which are a bunch of the ones that again we named here a couple of minutes ago and you do notice that today actually the MJ stocks they did quite well you can see you know ACB up 3% CGCs up about 7% Cron up about 9% and this is really because there's news that a congressional committee is advancing a bill that would lift the federal ban of cannabis or on cannabis rather an overturn past convictions so that's a really nice catalyst that did end up spiking up these MJ stocks today but if we're just looking again on a 20 day basis they've been slaughtered and even you know this green day here it really didn't do much in terms of you know the price performance over these past couple of weeks because they're still down extremely a lot massively right so if I was forced to buy a stock and honestly guys I actually did buy a little bit of this stock today but if I was forced to buy a lot of the stock in the MJ industry what am I personally buying well it's not Cron here guys it's actually ACB also known as Aurora Cannabis and this is a stock that actually reported earnings a couple of days ago and since then the stock has been crushed we'll talk about what they did in terms of earning some key metrics in a couple of minutes here but like all the MJ stocks guys this one in specific has been slaughtered arguably the most from 1038 down to about 214 right and why am I picking ACB out of you know CGC, Tillray Aphria, you know OGI why am I picking ACB it's really because in my opinion and based off my research and honestly data hardcore evidence this stock has the most global exposure in the cannabis industry right they're active in 25 countries across 5 continents with 15 global production facilities, medical cannabis leader in Europe as well as in Latin America they recently purchased Pidanius now known as Aurora, Dutchland in Germany which provides them first mover advantage in the single largest federally legalized medical cannabis market with a population of 82 million people so now they have the Germany market the German market under lock which is a market of around 82 million people that is incredible right first licensed producer to ship medical cannabis to Denmark they've also built relationships substantial relationships with Italy the Czech Republic Poland and Portugal and of course once the United States you know let's say they have cannabis federally legalized here in the next couple of years that's also going to be a massive market that ACB is going to try and get into I'm assuming right so there's a lot of global action going on right now with ACB and that's honestly why I'm liking it in terms of that aspect right if we're digging a bit deeper in terms of their valuation here and go on Yahoo Finance you know the year ending June 29th they really did about 250 million in revenue that's a growth from the previous year that's quite substantial they did 50 million that previous year so that's a huge growth there and with the recent chop down in their stocks price their valuation went from about like a $10 billion market cap down to a 2.44 billion market cap which again is why I've nibbled into this stock because me personally guys I've been waiting to get into the MJ industry here for a while I've day traded swing traded in the past but I haven't taken a long-term investment approach because the valuations were too sky high and now that everyone's selling I'm taking the contrarian point of view here of nibbling some shares and I do plan on adding more if they get lower especially into the $1 range I'm looking to add more because at a price to sales ratio right now of about 11 this is technically the cheapest marijuana stock out of the biggest ones from my research that I'm seeing out there and again a 250 million revenue you know compared to the market cap of 2.4 billion that is a bit crazy right but think about it they're growing so quickly that once they get over the short-term stumbles being cash strapped all that good stuff well bad stuff really you know they could potentially grow into that valuation especially as they get more deep into these European markets and really start to sell more with cannabis 2.0 and especially if they get into the United States right so I think now the valuations have come to a point where it's a good idea to consider this it's a good idea to consider this but one thing to also consider is the cons there's a lot of cons involved with investing in MJ stocks obviously as you can see based on the stock's price the stock doesn't fall from 10 to 2 bucks for no reason we've talked about oversupply we've talked about delay of cannabis 2.0 there's a lot of other stuff as well now we'll talk about ACBs specifics here so they just reported earnings like I mentioned right 2020 fiscal 2020 quarter 1 results showed a 24% drop in revenue and a 30% drop in volume so right off the bat that's why ACB got absolutely crushed here over the past couple of days literally before their earnings report they were $3.20 now after they're about $2.20 they also reported that they're suspending construction construction at Aurora Sun and Nordic 2 two of its largest greenhouses under construction and again marijuana or MJ sorry again YouTube MJ they are strapped for cash so they did this because by doing this canceling these two production sites they're going to save $190 million Canadian dollars and that's very helpful right now for ACB right another thing to keep an eye on and to consider if you're looking to invest is the potential dilution of their shares let me explain this a bit further and this might be confusing for many of the viewers out there but still it's something worth mentioning here Aurora has 230 million in Canadian dollars worth of convertible debentures that mature in March 2020 which could cause dilution of shares and devalue the current shares like I mentioned so if we're winding back a bit two years ago in March 2018 the company announced a private placement of these debentures and if you guys don't know what a debenture is a convertible debenture it's pretty much a type of long term debt issued by a company that can be reverted or converted rather into stock after a specified period so they kind of have a decision in terms of that debt so back to what I was saying in March 2018 the company announced a private placement of these debentures at an annual interest rate of 5% the conversion price is set at 13.05 Canadian dollars however Aurora cannabis has the right to force conversion of the debt into shares according to the company's latest filing this would be possible if the VWAP volume weighted average price of the company shares surpass 17 dollars guys 17 dollars and the fact that they're at 2 dollars obviously they did not surpass that 17 dollars so debenture holders at this point will not have any incentive to exercise the conversion to equity this implies that the company must treat these debentures as debt and return the money to investors and since Aurora cannabis guys and again a lot of these MJ companies they're strapped for cash they don't have a lot of cash on the balance sheet what are they going to do now they have this big debt coming up what are they going to do well they're going to raise funds and maybe even issue they're going to issue new shares here which when more shares come into the market it devalues their current shares outstanding because more shares more supply that ends up dropping the price so current investors that's not going to be too good of a sign the devaluation of the shares due to more shares being available but that's why I'm nibbling in guys that's why I'm not going in all the way so if the shares do end up dropping more over these next couple of months I can end up scooping in buying some more and ultimately you saw the screenshot of how much I put in this is a very tiny position guys it's not even 1% of my portfolio at this point and again I'm a younger guy I'm invested in NEO as well I figured I want to put some money in the MJ space and if it gets low enough guys I might even start putting some money in an MJ ETF which is literally ticker symbol MJ that's part of the major companies out there CGC I believe Kronos, Aphria of course ACB so you can get exposure to all of them but me personally right now I like ACB the most on an individual basis which is why I'm buying in a bit so let me know down below what are your thoughts on the stocks I'd love to know your opinion now let's go very quickly rapid fire and I'll see you guys in the next one bye this is another one that saw a pull down today it seems like it's finding new ground out about 150-152 so this could be a potential dip by heading forward here moving forward that could get us up to 163 bucks where we can profit that upside of about 5-6% another one Tesla guys which did hit 360 like we were talking about over these past couple of videos this is one worth watching and now that we're at this resistance 360 what are we going to do here are we going to pull down test 350 again maybe get in on the dip there that could be a nice dip buy from 350 back to 360 or are we going to completely shatter 360 move up to the next level which is going to be around 388 dollars per share and if we zoom out a bit to the three year chart actually there's a level at 375 that I remember that we may be going to the all-time high at around 390 and then maybe Elon Musk's wish of Tesla 420 may actually be a reality so we might actually hit 420 like Tesla, Elon Musk's CEO tweeted out a couple months ago as you guys I'm sure you guys remember that so Tesla that's definitely one I'm keeping my eyes on here you guys, D gas guys, natural gas in general just watching what that report is going to be like here on Thursday 10 30 a.m. Eastern Standard Time we all know you guys has been getting crushed natural gas has been bearish over these past couple of days they reported 3 billion cubic feet of an injection last week ever since then we've seen this drop in natural gas but a lot of people are projecting I was doing some research on it I think it's like a withdrawal of about 30 billion cubic feet this week so if we get a ridiculous withdrawal this can spike up natural gas in the snap of a finger just as quick as it was going down so I'm kind of just waiting on the sidelines for this to be honest guys not actively trading it just waiting to see what's going to happen again on Thursday 10 30 a.m. Eastern Standard Time so that's really it for the video guys a lot of the other stocks in the market that are killing it you know you have Apple Microsoft has been crushing it here guys Netflix is trying to make a rally here you know maybe if we break 315 that could be a potential play or maybe even from here up to 315 that could be a play so these are just some stocks that I'm watching Facebook as well into the 200s today maybe up to 205 is where we're pushing now this is another stock that I'm involved with as a swing I don't know if I mentioned that before up a good amount on this one looking to unload those shares at around 205 so that's pretty much it for this video if you enjoyed it feel free to go down below hit that like button consider subscribing if you do want to see further content for me and don't forget to join our StriveSmart Discord group chat and our StriveSmart Facebook group link down below as well as the StriveSmart merch if you want to rock a sick t-shirt or sweatshirt right now so I'll catch you all in the next video again thanks for watching let me know all your opinions down below peace out