Volatility can be our friend, as well as a drag. This week, Big Cannabis had what it took to outperform the S&P 500, thanks to a basic rule of market physics.

Stocks like Aurora Cannabis Inc. (NYSE:ACB) plunged to statistically improbable levels in recent weeks, but statistics is a field where exaggerated moves in either direction always correct sooner or later.

That’s what happened this week. Canopy Growth Corp. (NYSE:CGC) and Tilray Corp. (NASDAQ:TLRY) joined the rally as well.

The fundamentals for the group didn’t change much. Only the charts stretched too far to the downside. Now that they’re snapping back, I’m eager to see how far the rally goes.

After all, every bull run starts with a bump. Some stop there. But when a stock really gets rallying, we can all cheer.

Either way, my subscribers in IPO Edge don’t buy the majors or trade for instant gratification. We’re in small names for a holding period that can be measured in months, not minutes.

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. The Financial Times describes Ms. Kramer as “A one-woman financial investment powerhouse” and The Economist distinguishes her as “one of the best-known investors in America”. Ms. Kramer is often quoted in publications such as the Wall Street JournalNew York Post, Bloomberg, and Reuters. She is a frequent guest commentator on CNBC, CBS, Fox News and Bloomberg, providing investment insight and economic analysis. Ms. Kramer was an analyst and investment banker at Morgan Stanley and Lehman Brothers.  Ms. Kramer founded and ran a long-short hedge fund and has been chief investment officer overseeing debt and equity portfolios. Since 2010, Ms. Kramer’s financial publications have provided stock analysis and investment advice to her subscribers.  Her products include GameChangers, Value Authority, High Octane Trader, Triple-Digit Trader, 2-Day Trader, IPO Edge and Inner Circle. Ms. Kramer, a Certified Fraud Examiner, has also testified as an expert in investment suitability, risk management, compliance, executive compensation, and corporate governance. Ms. Kramer received her MBA from the Wharton School at the University of Pennsylvania and her BA with honors from Wellesley College. Ms. Kramer has provided testimony regarding investment policy to the U.S. Senate and is a frequent speaker on the markets, portfolio management and securities fraud and compliance. Ms. Kramer is also the author of “Ahead of the Curve” (Simon & Schuster 2007) and “The Little Book of Big Profits from Small Stocks” (Wiley 2012).

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