Wednesday Whipsaw

Volatility is reaching levels not seen in equities in the last several months. U.S. stocks started out the day extremely weak, rallied, sold off and climbed back to end the day lower, but significantly off the daily lows. Talk about whipsaw action. The S&P ended the day at 1862 which puts the market decline of ~ 7.8% from recent highs, a correction I have been anticipating.

The cannabis markets declined in sympathy today with MJIC Marijuana Index and Benzinga 420 Marijuana Index both declining 3.9% and 1% respectively.

Daily Positive – Day 3 of positive performance in the Russell 2k and Russell Micro Cap. This could be a leading indicator for improving risk sentiment and potentially for cannabis markets

Daily Negative – GW Pharmaceuticals added to yesterday’s weakness with declines of ~5%.

Elections are quickly approaching so the battleground is heating up. Florida is certainly a state of interest and contention. The group leading the opposition to medical legalization is well funded. Anyone with interest in that state becoming a medical market should take some time to understand this and the campaigns working for legalization.


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.

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