What’s up Wednesday?

Wednesday Graph

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.

The cannabis indices diverged today with the MJIC Marijuana Index declining by 4% and Benzinga 420 Marijuana Index surging by over 9%.

Daily Positive – Despite the stock dipping, Surna posted news about a technology that has potential positive implications. We mentioned them in Monday’s daily positive, but good news is good news.

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.



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.

Related posts