McConnell About to Flip on Weed?

  • Is This the New Pro Weed Mitch McConnell?
  • This is What Teens Are Buying (According to a Leading Investment Bank)
  • Tesla’s Smart Summon Feature is Dumb
  • The “X-Ray” Investment System

 MARIJUANA 

Is This the New Pro Weed Mitch McConnell?

Senate Majority Leader and late-night monologue punching bag Mitch McConnell has booked a trip to weed town (AKA Southern California), signaling he may be rethinking his long-held position on marijuana reform.

During a week-long trip to California, McConnell will dedicate at least two whole days to bro-ing down with marijuana industry execs and small business owners, an unnamed source told MarketWatch.

(Man, I’d love to be an unnamed source someday. If you guys ever need an unnamed source for anything, hit me up. I heard Ted Cruz had a team of NASA scientists surgically remove the kissability from his lips.)

Reportedly, McConnell has two marijuana-focused lunches penciled in, where he’ll discuss reforming the cannabis-related banking system.

Banking Bad: Even though marijuana is legal in some form in 33 states, Lucifer’s arugula is still banned at the federal level. As such, financial institutions cannot accept any money connected to legal weed (and that’s a whole lot of dough).

The Senate Majority leader is also planning a tour of at least one cannabis company and production facility. (Which is going to create some of the choicest stock photos of Mitch McConnell awkwardly standing next to giant marijuana plants.)

Forehead image

McConnell’s office is refusing to comment on whether or not this visit means the senior conservative in the Senate is rethinking his long-held opposition to marijuana reform (but he was seen last week in DC wearing a hat that said #420BlazeIt and buying six bags of sharing-size Doritos).

The weed executives are expected to pitch reform on the platform that the current laws unfairly penalize businesses that obey federal laws, such as hemp farmers producing the crop for legal CBD products.

“We’re happy to see that Leader McConnell is coming to see how a regulated market is an improvement over prohibition,” National Cannabis Industry Association executive director Aaron Smith told MarketWatch in an interview.

“Right now the priority is banking, which affects [McConnell’s] constituents in the hemp and CBD industry, as well as legal cannabis businesses here in California.

“That’s really our primary ask — common-sense policies around banking and public safety, and we’re hopeful [McConnell] will see the need for that and move forward along with Chairman [Sen. Mike] Crapo.”

To be honest, If you had told me I’d be reporting on McConnell coming around to the idea of marijuana reform today, I’d have called you a fool and told you to get out of my house, how did you get in here?!

But I guess it’s hard to ignore a $145 billion market. Especially, when you’ve got folks who can’t legally bank their huge profits and have all this loose cash sloshing around.

This’ll be a huge boon to stocks like this tiny 70-cent marijuana company that is primed to dominate an industry struggling to meet unprecedented demand.

This pot stock is one of my analyst’s favorite stocks right now. He says, if you’ve ever wanted to get rich in the weed market, you’ve got to see this.

 TRENDS 

This is What Teens Are Buying (According to a Leading Investment Bank)

Consumer Reports tested Tesla’s new “Smart Summon” feature and found it glitchy, only worked in very specific circumstances, and kind of stupid.

With the Smart Summon feature, Tesla owners (who according to market research data are almost exclusively 46-year-old white guys) can theoretically use their smartphone to summon their car to them.

Tesla says Smart Summon, which it rolled out to Tesla 3 owners at the end of September, is its first in a highly anticipated suite of FULL SELF DRIVING TECHNOLOGY. It also sucks.

“We found that the automation was glitchy and at times worked intermittently, without a lot of obvious benefits for consumers,” writes Jeff Plungis (who I’m pretty sure is an SNL character that lives in a toilet).

Elon’s FULL SELF DRIVING TECHNOLOGY came to the attention of Consumer Reports when Tesla 3 users (who had paid an extra $6k for the upgrade) took to social media to complain about the feature and its many shortcomings, including just slowly rolling in front of oncoming traffic:

Roddie

According to Consumer Report’s Incredible Mr. Plungis, the feature only worked in very specific situations and even then would stop suddenly or drive in the wrong lane entirely (albeit very, very slowly).

“The system is designed to work only in private parking lots, but sometimes it seemed confused about where it was,” wrote Dr. Plungis from his time traveling toilet machine.

“In one case, the system worked in one section of a private lot, but in another part of the lot it mistakenly detected that it was on a public road and shut itself down. At various times, our Model 3 would suddenly stop for no obvious reason.”

“The Model 3 also didn’t always stay on its side of the lane in the parking lots.”

Jake Fisher, Consumer Reports senior director of auto testing and man with a down-to-earth name I can relate to, says consumers are not getting fully tested, consumer-ready technology. In essence, he says, Tesla owners are paying $6,000 to beta test Elon’s pet project.

“What consumers are really getting is the chance to participate in a kind of science experiment,”he says. “This is a work in progress.”

 TECH 

Tesla’s Smart Summon Feature is Dumb

Consumer Reports tested Tesla’s new “Smart Summon” feature and found it glitchy, only worked in very specific circumstances, and kind of stupid.

With the Smart Summon feature, Tesla owners (who according to market research data are almost exclusively 46-year-old white guys) can theoretically use their smartphone to summon their car to them.

Tesla says Smart Summon, which it rolled out to Tesla 3 owners at the end of September, is its first in a highly anticipated suite of FULL SELF DRIVING TECHNOLOGY. It also sucks.

“We found that the automation was glitchy and at times worked intermittently, without a lot of obvious benefits for consumers,” writes Jeff Plungis (who I’m pretty sure is an SNL character that lives in a toilet).

Elon’s FULL SELF DRIVING TECHNOLOGY came to the attention of Consumer Reports when Tesla 3 users (who had paid an extra $6k for the upgrade) took to social media to complain about the feature and its many shortcomings, including just slowly rolling in front of oncoming traffic:

Roddie

According to Consumer Report’s Incredible Mr. Plungis, the feature only worked in very specific situations and even then would stop suddenly or drive in the wrong lane entirely (albeit very, very slowly).

“The system is designed to work only in private parking lots, but sometimes it seemed confused about where it was,” wrote Dr. Plungis from his time traveling toilet machine.

“In one case, the system worked in one section of a private lot, but in another part of the lot it mistakenly detected that it was on a public road and shut itself down. At various times, our Model 3 would suddenly stop for no obvious reason.”

“The Model 3 also didn’t always stay on its side of the lane in the parking lots.”

Jake Fisher, Consumer Reports senior director of auto testing and man with a down-to-earth name I can relate to, says consumers are not getting fully tested, consumer-ready technology. In essence, he says, Tesla owners are paying $6,000 to beta test Elon’s pet project.

“What consumers are really getting is the chance to participate in a kind of science experiment,”he says. “This is a work in progress.”

In Other News

Yeah. That’s a grown-ass lady.

Clock icon

ONE LAST THING

Exceptional Investor Series: Chuck Hughes

In the One Last Thing Exceptional Investors series, we get up close and personal with some of the best investors in the business and find out what makes them (and their bank accounts) tick.

Today, Chuck Hughes is back in the One Last Thing HQ to tell us more about his proprietary “X-Ray System.”

Chuck is a former fighter jet pilot for the U.S. Air Force who took $4,600 and turned it into $460,164 in profit in just two years using this system.

Last week he broke down his strategy into its simplest terms:

  1. Find the trend
  2. Determine if a stock is overbought/oversold
  3. Choose the right options trade.

I got a whole bunch of emails from people wanting to know more so I asked Chuck to come back and explain his process in-depth.

Chuck is going to break down the first two steps in today’s issue and return tomorrow to explain the rest (as long as he can put up with One Last Thing’s terrible coffee for another day or two).

Take it away, Chuck:

Step One: Finding the Trend

Take a look at this chart representing the price trend for Barrick Gold Corp (NYSE: GOLD):

Charts

(Note: this is not an official recommendation. It is simply an example to illustrate the 1-month and 10-month moving averages.)

We can break this down very simply.

Let’s take a look at the green-and-red line. That line represents the stock’s price movement, using its daily closing price.

Take a look at the solid red line. It represents the 10-month SMA (simple moving average). Now look at the solid purple line. It represents the 1-month moving average.

Now let’s look at where the 1-month moving average crosses the 10-month SMA and starts to climb …

Right around June 14th, right?

Here is the stock chart after June 14th.

Chart

The stock soared!

So, to reiterate the first step is to identify the crossover point between the 1-month and 10-month moving averages.

Step 2: Using Keltner Channels

If you’re unfamiliar with Keltner Channels, don’t worry. Most regular traders are. Here’s all you need to know: They are essentially an indicator of when a stock is either overbought or oversold.

There’s a Top, Middle, and Bottom line, and the channels contain the movement of the stock price, for the most part.

Here’s how you use it: If the stock price is trading near or above the top Keltner line, it’s overbought. 

If the stock price is trading near or below the lower Keltner line, it’s oversold.

There are many ways to use Keltner Channels, but for our purposes here…

We want to enter a trade when the trend is up (which we would know by using Step 1) and when the stock is oversold (so trading near or below the lower Keltner line).

That’s the proper timing point.

Now that the first two parts of the trade are set up, and you know which way the trend is going and when to enter it, we’ll take a look at the final step in tomorrow’s edition of One Last Thing.

Computer icon

MARKET MOVEMENTS

Closing Data for 10/9/19

DIJA $26,345.36 ↑ 0.69%

S&P Index 500 $2,919.49 ↑ 0.91%

NASDAQ $7,903.74 ↑ 1.02%

Gold $1,512.00 ↑ 0.54%

Silver $17.81 ↑ 0.62%

Bitcoin $8,607.50 ↑ 4.83%

  • AT&T will sell its Puerto Rico and U.S. Virgin Islands networks to Liberty Latin America Ltd. to cut its debt pile.
  • American Airlines delays return of Boeing 737 Max planes to its schedules until January.
  • Fitbit is moving production out of China starting next year as a hedge against the tariff war.

Cheers,

Shane Ormond
Editor, One Last Thing

Shane Ormond

Written By Shane Ormond

Shane Ormond is the managing editor for One Last Thing. In a previous life, he wrote and edited copy for International Living in Waterford, Ireland.