Friday Follows on Market Weakness
The global market weakness extended through today, as investors continued to sell stocks heading into the weekend. The S&P 500 is quickly approaching its 200 day moving average, which is being viewed as support to conclude the recent correction. Time will tell, but it wouldn’t be surprising to see choppy sideways action or a bit more downside over the next several weeks.
Unfortunately, MJIC Marijuana Index and Benzinga 420 Marijuana Index both significantly underperformed small and micro caps, with declines of more than 5% each. Equity correlations tend to increase during periods of market stress, so this is something to track.
Daily Positive – Brazil Interactive Media (BIMI) finally completed the name change and ticker to American Cannabis Company AMMJ. This is seen in a positive way as the ticker and company name finally reflect the underlying business.
Daily Negative – There was a very concerning article out last night by Reuter’s Canada. The movement towards legalization is far from smooth and articles like this are a good reminder that there is plenty of work still to be done.
This sector is particularly vulnerable to the changes in politics, so keeping updated on and supporting the issues are key to the industry’s success. Election Day, November 4, 2014, is approaching and many states have initiatives on the ballot. If you are interested, it is great to support or even to know about the organizations that are working to implement change, such as the Marijuana Policy Project and the National Cannabis Industry Association.
Have a great weekend.