Relative Strength Is Building In Cannabis Stocks
Our latest TDR Trade to Black podcast, presented by Flowhub, is here. Hosts Shadd Dales and Anthony Varrell open with the House set to vote this week on delaying the hemp THC ban, giving lawmakers more time to craft regulations that keep products legal. It’s a big week for the industry, with a lot riding on how lawmakers handle it from here. The delay would push the ban’s effective date to December 11, after the Senate advanced the measure 90–6 and tabled Senator Ted Budd’s amendment to strip it 61–32. Varrell weighs the odds, noting hemp’s resilience, the pushback from 35 state attorneys general, and reports that Mitch McConnell may soon return to the Hill to vote.
In segment one, Dan from the Chart Guys logs on to break down how cannabis stocks have traded over the past couple of weeks. July is looking more and more like the bottom, and the charts are now showing steady accumulation with volume picking up along the way. He frames MSOS as a roughly 10-month tightening range, with about $3.88 as his must-hold level, $6 as the first bull signal, and $7.25 to confirm it. He flags Friday’s Glasshouse drop — down about 10% on three to four times average volume — against Trulieve’s post-uplisting strength, dismisses Tilray as a dilution-driven penny stock, and lays out his rotation thesis, shifting focus from psychedelic names like Compass Pathways and Definium Therapeutics back toward cannabis. With relative strength building across the sector, we dig into what that’s telling us heading into September.
In segment two, Dan Ahrens, portfolio manager at AdvisorShares (NYSE Arca: MSOS), joins to talk about the ETF itself. He gives his read on the sector with pending rescheduling news, walks through some of the technical and factor-related dynamics behind the fund, and weighs in on recent price action — MSOS up about 17% and MSOX about 33% over the past month. We also ask him directly about Green Thumb Industries (OTCQX: GTBIF) getting hit by MSOS outflow on Friday, with 500,000 shares sold heading into the close, and why that trade was made. He addresses the fund’s roughly $19 million in recent redemptions, GTI’s lag versus peers, and Curaleaf’s hostile bid for Aurora Cannabis, led by Boris Jordan.
Policy, price action, and a direct conversation with the people trading and managing money in this space — tune in.
