Eyes of the World

Focus shifts to the D.E.A

Daily Recap

The federal health authorities who recommended rescheduling cannabis have finally agreed with one of marijuana advocates’ core arguments: compared to other widely available and abused substances—namely, alcohol—cannabis is much safer.

While nothing has changed yet with regard to the Schedule, the eyes of the world are on on the DEA, which is expected—but not guaranteed—to follow the science.

House Call

The American Nurses Association is applauding the U.S. Department of Health and Human Services’ recommendation to move cannabis to Schedule III, saying it’s “a positive step toward developing an evidence-based approach for marijuana and related-cannabinoids use in disease and symptom management.”

“This marks the first time HHS has publicly acknowledged marijuana’s medical use.”

Tide Pods

After numerous snafus, blunders, fumbles, and flubs, the fight over Alabama medical cannabis licenses is headed to the state’s supreme court. 

The current restraining order is the third stoppage of the licensing process. After the last two, the Commission decided to start over and redo the entire process in an effort to correct specific mistakes—but it looks like that hasn’t worked either.

Stocks & Stuff

It was another digestive day in Cannaland as U.S. canna stocks worked off their short-term overbought condition following the 24% Thursday-to-Monday MSOS rally.

The ETF spent the majority of the session tethered to the $8 strike (where outsized open interest resides)—retracing half of the move from ~$7 (Thurs) to $9 (Mon.)—as we watched today’s broader market rally from the sidelines.

Below, we’ll chew through today’s price action, check for damage under the hood, talk about the potential timing of the D.E.A publishing their proposed rule (+ what comes next) and look through tomorrow’s expiration to what’s on tap for next week.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $82M ($51M)

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