The stock market has been incredibly resilient in the face of major bearish headwinds — the war in Ukraine, rampant inflation, big interest rate hikes and Covid, asserts Joe Cotton, editor of Cotton's Technically Speaking.

We think the “bottom is in” regarding select quality, speculative stocks. For example, we have recently been buying "pot" stock Tilray (TLRY). We would rate this as a “very speculative” stock.

Tilray merged with Aphria on May 3, 2021 to create the world’s largest cannabis company. The new company continues to trade under the TLRY stock symbol.

All of the major pot stocks soared on recent news that the U.S. Congress passed a piece of legislation supporting marijuana research, and more significantly, will be holding a floor vote on the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act next week. The House of Representatives previously passed that legislation but it stalled in the Senate.

Tilray 1

The stock is ripe for a short squeeze; if you look at the chart, you can see that in October of 2020, the stock moved from $5.00 per share to over $65.00 per share in just 4 months-due to a short squeeze. Back then it had a very small float (shares available to trade).

Tilray 2

The float is much higher now — 447.82 million shares, but there are also 65.84 million shares short (per Yahoo Finance) which is 13.97% of the float, as of March 15th, 2022. That’s a large percentage of the float, especially if the stock is selling at the low end of its trading range.

I’m sure the shorts are terrified; the stock traded 450,000,000 shares in the 3 days prior to writing this review — equal to its total float outstanding. If the "Reddit Boys" get involved, the stock could easily go to $40. I could use the money!

I began buying the stock at $5.53 on March 18th, and bought more on March 23rd at about $6.20, and more at $6.57 just as it was exploding to the upside — in all, doubling my position. I don’t plan to sell the stock until it gets a whole lot higher. 

Subscribe to Cotton's Technically Speaking here…