Adult Swim

Canna stocks rip as investors shake sand from their shorts.

Daily Recap

The extended holiday weekend is finished and in addition to canna fans being able to enjoy the wellness benefits of their kind and tasty bud for an extra day…

…it also means the adults have returned from break to find out there’s a new sheriff in town—and her name is U.S cannabis.

We covered the recent news + upcoming potential catalysts here, here and here and if you’re new to these parts, a little context will go a long way as we unpack what’s next for the space.

Our year-end wish list yesterday had a glaring omission, one that was immediately amplified when Green Thumb announced a share repurchase program out of this morning’s gate. There’s been a steady stink from the cheap seats that C-suites haven’t sent the right signals and this move—along with insider buying at Cresco (CRLBF), 4Front (FFNTF) et al—checks the “if they believe so much why don’t they buy?” box.

By the time the dust settled on today’s trading, U.S cannabis ETF MSOS rallied 19% (2X ETF MSOX +33%) on 18.6M shares and closed near the high. While we don’t yet know what the bears did today, we do know that MSOS short interest upticked from the announcement through Friday as many observers continue to point at this rally and proclaim, “that motherfucker is not real!!”

With that said, MSOS is now +66% (MSOX +151%) in 3 1/2 trading sessions since the news hit and some of the lower tier MSO’s rallied more. While overbought conditions are starting to scream for attention in the short-term, and we understand the past isn’t a precursor to future performance/ price action, we would be wise to remember where we came from while observing the technical proxies, such as 200-day moving averages.

In other sector news, a study found that 92% of illegal cannabis samples contained pesticides; MMJ companies have slammed NY Gov Kathy Hochul over her legal weed mess; there’s a surge in NY kids getting sick after accidentally eating cannabis candy, which is all part of that same sad NY story; California canna regulators doubled their grant funding to help localities open licensed shops; Ricky Williams wants NFL teams to use cannabis to treat players; more older adults have been trying pot, many for the first time; the White House said (with a straight face) that President Biden has always supported medical cannabis legalization; Illinois monthly sales were +10% YoY; the new U.S canna comps are in; we highlight coverage of the HHS move, hear from some of the street’s top analysts, share the latest updates from DC and top it all off with ten random thoughts.

All that, and more, just scroll down…

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $277M

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