In this week’s Trade To Black Podcast, TDR Founder Shadd Dales, lead financial writer Benjamin A. Smith speak with Jason Spatafora—otherwise known as the @WolfOfWeedST—about U.S. cannabis stocks and the macro stock market. With optimism once again abounding with the filing of the Climb Act and word that Senate Democrats are looking for a deal on federal cannabis reform in calendar 2022, the panel discusses what this all means for investors.
Jason Spatafora spends much of his time as a partner at True Trading Group LLC, an organization built for active traders who seek guidance in navigating the capital markets. He has a particular affinity for options investing in a swing trading capacity, using both short and long-dated strategies.
Trade To Black Podcast Cliffsnotes:
@1:10 The overall market had a very strong week with the NASDAQ 100 ↑7.40% and S&P 500 ↑6.50%, yet U.S. cannabis stocks did not respond in kind. Why not?
@2:25 Jason thinks U.S. cannabis stocks are going lower. How much lower can a cheap sector decline further?
@4:00 MSOS fighting the trend in light of potentially more givebacks in the broad market.
@5:31 Anger increasingly boiling over on Twitter cannabis influencers as investors become frustrated with performance.
@10:52 Research in the cannabis sector has been a disaster from the beginning in the cannabis sector.
@13:52 Why do analysts continue to get price projections wrong?
@15:20 What things would you like to see with certain sector influencers?
@19:24 The decline in U.S. cannabis stocks has been a double cost because investors over-exposed to the sector missed out on a historic bull run elsewhere in the market.
@25:51 Will cannabis get pushed on the backburner as we head into the midterms?
@28:57 Should investors be worried is Republicans gain both the House and Senate in the midterms, and Mitch McConnell is controlling the agenda in the Senate.
@35:05 End of quarter window dressing means buying and selling in different sectors.
@38:48 The real estate market remains hot in Florida.
@40:10 Still a lot of headwinds in the macro market, so panel remains cautious in current environment.
@42:28 Equities are still not cheap right now on a historical basis.
@45:15 Stock valuations can depress more than you believe if earnings growth stalls out and reverses.
@51:05 The re-rating on U.S. cannabis stocks is going to blow people’s minds when the right combination of regulatory reform takes shape. Patience required.
To view our previous Trade To Black Podcast, click here.