I haven’t seen any news out today that changes the fundamental assumption that the largest national catalysts in the cannabis sector, passage of The SAFE Banking Act and CBD Legalization, along with the push towards MJ Legalization, will continue moving forward in 2021
So given the runup across the cannabis sector we’ve seen thus far in 2021, I’m viewing today as a technical correction, which we have seen occur in all prior cannabis manias
The big name stocks, and when I say that I mean the ones that trade on the Nasdaq and NYSE, have all exhibited very consistent uptrends in 2021, and on Monday, Tuesday and Wednesday of this week, the cannabis sector transitioned from being in a very warm premania stage, igniting The 2021 Cannabis Mania, marked by a tremendous surge in volume and interest in cannabis stocks
In all cannabis manias we have seen thus far, there are periods of time during which the cannabis sector surges, as well as consolidations and pullbacks
Because we haven’t seen any real pullbacks so far in the sector, and there wasn’t any specific news that came out today that changed the fundamental assumptions about 2021 amongst cannabis investors. today’s trading felt surprising, especially in light of the enormous strength we’ve seen his week — but in the big scheme of things, today’s trading action is actually a normal occurrence during a cannabis mania
They weren’t able to do so today, so I’ll continue to monitor those big names to see if they can put in bottoms tomorrow — if so, then I think we could see a resumption of the mania as early as tomorrow or early next week
Sleek
