Today we bounced, finally! Stocks surged higher right from the open lead by large capitalization stocks. The S&P 500 closed the day higher by 1.3% to 1887 though it ended the week lower and extended the recent correction duration to four straight weeks of negative performance. The Russell 2k finally took a backseat today, underperforming their bigger brethren with a mildly negative day of -0.21%.
Daily Positive – For the second day in a row, we saw more positive price action, despite the indices overall performances. Volumes were light, see below.
Daily Negative – FINRA halted trading on OTCBB and PINK Sheet stocks for a good part of the trading day. We are not aware of the reason yet, but this is the second time this year we have experienced a shutdown which impacted many of the companies in the cannabis public markets.
This year has been an historic year for cannabis for many reasons. Perception, education, politics and investment landscapes are all rapidly evolving. The public cannabis market has certainly experienced extreme ups and downs this year. We believe there is potential for a good 2014 finish for cannabis stocks. However, we hope the premium companies rise to the top and more of the low quality names continue to wash out. A little positive risk sentiment will go a long way in this market.