Coming in for the kill.

I”m starting to see a little nibbling here and there. Nothing yet that is much more than anecdotal, if that, let alone evidence of a bottom. It might not last, but a low would be substantial.

Recall that two weeks ago today on April 15 was carnage. And not just for the marijuana sector, which had been sinking for weeks. The broader market finally reversed down hard, losing 4% in just over a week.

4%? Lightweight.

Broader markets and the marijuana sector hit lows into and out of that day. My publishing that night for the next session was very much based on the potential for that to have begun forming a bottom. In fact, many components of the sector rallied from there and have yet to retest that day”s lows. 

Not for lack of trying. Many that rallied have retraced quite a bit, some entirely.

As warned then, the rising tide wouldn”t lift all boats. Some issues have extended down to lower lows, and some only today are probing prior lows that were barely threatened two weeks ago. Are these signs of another big downleg coming? Perhaps. Often, however, this is simply the inverse of an extended rally whose leadership is rotating into the laggards — the downside “leadership” may be overdone.

I”m producing a lists of Bottom Fishers and Falling Knives with their extreme price potentials to be ready for any initial follow-through tomorrow. The goal is to catch the rubber band before it has snapped back.

If this isn”t just a retest of the prior low, then things might not get much worse near-term. But the stock-picking would still be key.