All it took was a text from Rogan to Trump to get this pushed through the FDA. “It was that easy.”
Joe Rogan appeared at the White House on Sunday where President Trump signed an executive order(EO) that “directs the FDA to expedite their review of certain psychedelics already designated as breakthrough therapy drugs.” This is the kind of news catalyst that drives momentum plays.
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The Big Picture
I’m very open about my love and admiration for the U.S. military. What happened over the weekend was about expanding the use of psychedelics for PTSD, depression, drug addiction, and anxiety. Rogan was joined by former Navy SEALs Marcus Luttrell and Robert O’Neill, as well as HHS Secretary Robert F. Kennedy Jr.
How does this create a trading opportunity?
First, several tickers in this space gapped up on the news. One, Psyence Biomedical Ltd.. (NASDAQ: PBM) has an established, pharmaceutical-grade supply chain of ibogaine. That was the compound Rogan talked about in the Oval Office.
Interestingly, the Oracle algo picked up PBM last week, before the EO got signed. It’s crazy how many times these kinds of momentum plays get picked up before the news. Remember, you can’t hide price action.
You can wait to release the news, but there are usually ripples under the surface of the water. For example, there was leaked news of a potential executive order on Thursday (April 16). Several stocks in the space traded higher on increased volume.
How does this create momentum?
It would not surprise me to see this expand beyond established psychedelic drug companies.
I expect to see a lot of weed companies from a decade ago start to pop up. All these stocks got destroyed. Sold off. No one cares about them anymore.
That said, the EO suddenly made “psychedelics” the word of the week. It’s just like we’ve seen recently with AI.
I expect to see PRs from dead companies talking about how they’re pivoting to psychedelic research. It would not surprise me to see a lot of these pivot plays.
And it might be stocks other than just weed. But I would expect the weed players to be the ones to do it first.
My Take
Watch for those PRs and for an analogy. They’ll drop a PR to announce they’re now doing research into psilocybin or other psychedelics to try and pump up their stocks.
A word of caution: I wouldn’t recommend swing trading or investing in any of these psychedelic plays. Let’s just get that out there. These stocks are total trash, okay?
Now, for day trading?
I love them. So, trade them, love them, just don’t fall for the hype.
The two stocks on the watchlist below are the leaders from last week. But watch for other pivot plays around this news.
Watchlist
On April 16, CBS reported there was a draft EO around psychedelics. Several tickers, including PBM and Clearmind Medicine Inc. (NASDAQ: CMND) traded higher on the news.
Source StocksToTrade CMND 5-day, 1-min candle, psychedelic EO momo
On Friday, CMND didn’t do much. Yesterday (April 20). it gapped up into premarket and pretty much held.
The PBM chart is similar. Remember, this one is the leader based on the ibogaine angle.
Source StocksToTrade PBM 5-day, 1-min candle, psychedelic EO momo
Keep these stocks on your watchlist this week. All patterns in play.
On My Radar
- Salesforce just put the SaaS doom-and-gloom crowd back in their seats. I’m tellin’ ya, it’s time to embrace AI.
- “Psycho Cybernetics” by Maxwell Maltz is a classic that deserves a read. Every modern personal development guru was influenced by this book.
- Joe Rogan cracked up at the EO signing when President Trump declared, “I’m the greatest there ever was.”