The biggest standout of yesterday’s session was the unmistakable resurgence of the cannabis sector. Many of you will recall that we have tracked this sector throughout the year, and indeed, dating much further back than that. The gains we’ve seen from this market in 2014 have been nothing short of historical. Over the past few months, however, we had been witnessing a huge beatback sector-wide, with pot plays steadily declining across the board.
You can see below from the random chart examples we’ve pulled, that similar action has been occuring in most every related stock. Familiar plays like HEMP, TRTC, and GRNH all exhibit strikingly similar paths. Steady, heavy losses followed by distinct signs of a turnaround.
Presumably the pickup we’re seeing as we head into the end into week’s end is due at least in part to campaign season kicking off for proponents of cannabis in places like Alaska, Florida, Oregon and Washington, D.C, who will all be voting on marijuana initiatives in some form or other on November 4th.
Other states are sure to be paying attention, especially those that are tight on cash. Colorado estimates that tax revenues from its first year of recreational sales stand at $60-70M. Meanwhile, Washington State’s measure roll-out of retail sales continues slowly, with only the second Seattle marijuana outlet scheduled to open up next Tuesday. In a study conducted by NerdWallet.com, the nationwide legalization of pot would produce over $3B annually.
So here we are, having waited patiently for the marijuana space to begin to heat up again, finally seeing the kind of rebound activity that can provide us with quick in-and-out gains. We’re going to want to watch anything even remotely tied to the industry as voting time draws even closer.
Extended Watchlist:
RPRX, CNET, NAVB, DRYS, GALE