Thanksgiving Eve: Give Thanks for Upward Trends

upward

U.S. stocks continued their upward trend on the back of broad economic optimism. Consumer confidence is climbing to a seven year high, as people head into the heat of the holiday shopping season. U.S. indices continue to approach all time highs and investors give thanks for the upward trends.The S&P 500 notched a small gain of 0.29% to 2,073.

Cannabis indices are failing to levitate with the broader equity markets as cannabis stocks declined again today. MJIC Marijuana Index and Benzinga 420 Marijuana Index decreased amidst very low volume with a drop of 2.06% and 1.2%, respectively.

Daily Positive: Not much to say on this one today, unfortunately.

Daily Negative: Tweed (TWD.V) posted disappointing numbers last night and the stock is reflecting in kind.

Over the past 48 hours we have watched a perfect example of manipulation of a company’s stock in action. Following mCIG’s morning press yesterday, we witnessed increased Twitter activity with the stock reflecting on an upward trend. Today, things are a lot quieter and the stock has erased all of yesterday’s gain.

This is an example of what happens when a group promotes something and then goes quiet, probably exiting at an elevated price. These actions leave investors burned and the stock hanging out to dry. mCIG is a pretty permanent name on the scene, so it isn’t going anywhere fast, just something to watch when you’re buying into companies. Certain investor exuberance may be self-serving rather than a clear indication of a good buy. The chart below illustrates this manipulation very clearly.

mcig

 

The discussion above is provided for informational purposes only and does not constitute an offer of, or solicitation for, any investment services or products offered by the author. The author is not making any investment recommendations and the opinions above do not constitute investment advice. Reference to above indices [and companies] is based on information provided by sources the author believes to be credible. Investing in the cannabis industry, as with other industries, presents certain risks including the risk of loss on an investment.

Morgan is a Founding Partner and Managing Director of Poseidon Asset Management. He is the Chief Investor of their Cannabis Focused Fund. Morgan previously worked for a privately owned Registered Investment Adviser and earlier was at UBS Financial Services focusing on wealth management. Morgan believes in the potential of the cannabis industry and likes having an active involvement as it develops. You can follow him on Twitter @PoseidonAsset.

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