What’s up Wednesday? Not the S&P 500, which ended its recent four day winning streak with a decline of 0.74% to 1927. Small and micro caps declined in sympathy of the overall market weakness.
Daily Negative – Low quality stocks popped today, with several PINK sheet names surging off of low levels, leaving us to ask, “What’s up with this?” It has been several months since we have seen 100%+ intra day gains in this space. Unfortunately, traders are focusing on stocks that are easily moveable. Buyer beware: something that could be said numerous times if the space keeps running, including questionable companies.
As we have noted, it is critical to know about policy changes, as we know it is intimately linked to the economics of this sector. Philadelphia’s new law is officially in effect to only write tickets for possession of marijuana, rather than making arrests. This is a sign of sentiments shifting around this issue.
We know the West Coast has traditionally been leading the charge, but with regulations shifting on the East Coast, we hope this is an indication of broader opportunity for the industry to gain national traction and continue to grow for investors.