The holiday trading is now behind us and the initial sentiment for 2015 is starting off pretty weak. Does this feel similar to last year at this time? Last year’s polar vortex was causing a lot of concerns around the strength of the economy. This time, declining oil is at center stage along with the potential Greek exit from the Euro. The S&P 500 dropped by 1.81% to 2,021.
Cannabis stocks trading nicely higher, despite broad equity weakness. We are not advocating for a majority of the companies rallying in the space yet; we don’t expect markets to improve overnight. Buyer’s beware! MJIC Marijuana Index traded flat and Benzinga 420 Marijuana Index continued higher by 4%.
Daily Positive: Though we haven’t seen a solid reason for some of the lower quality names to increase, the last couple of trading days may have afforded some investors an opportunity to exit from these problematic names.
Daily Negative: Putting out a press release about a stock price is not constructive by any means because this information is widely and publicly available to the minute. So pushing it to people via email, or via press release, is giving it undue weight and could confuse investors. This kind of activity is condemned by regulators and those who follow the guidelines avoid trying to create the illusion of greatness where there is none.
Today, Mentor Capital (OTCPink: MNTR), a PINK sheet company, did just that. In this market, things go up and down. If each company did a press release for every upward movement, we would be drowning in information. Reader, we would love your feedback: is such action press worthy or pumpy?
The ongoing weakness in energy and the strength in the USD is not a “risk on” environment for Canadian investors and the corresponding LPs. This action could be much more prolonged, so we will be watching the impact on the market going forward.