Framing the Year-End Bender

U.S cannabis is anything but boring.

Daily Recap

With earnings behind us and year-end ahead, cannabis investors find themselves in a familiar place: wondering how and when the playing field will tip at the federal level.

In 2020, the industry was riding high on the false optics of a blue wave but by the end of 2021, we were desperate for federal reform—and Congress came up painfully short.

Cannabis stocks, of course, took it on the chin and a year later, it was even worse.

By now, we know the drill:

When we get movement at the federal level—DEA announcement, SAFE banking, the Garland Memo, as has been promised by the DOJ and which will presumably fill in the blanks between Schedule III, state-level adult-use and the rest of it—the U.S. cannabis equation will finally exhale.

If and as these catalysts push into the new year, and they well might, it could invoke yet another wave of frustration but importantly, it wouldn’t make any of these events any less impactful or exciting. We have waited a long time for U.S. cannabis to arrive as an asset class, and we have never been closer.

Below, we’ll delve deeper into these dynamics as we ready for the home stretch of ‘23, talk about why there are reasons for optimism regardless of the federal sloth and chew through today’s session, talk about the flows driving the price action and check under the hood on the technical set-up after the most recent back-test.

All that and more, on the other side of this Quote of the Day:

“Whether you like marijuana or don’t like marijuana, our Constitution says that what happens intrastate is up to that state to decide. States’ rights’ is not just a political slogan. It is something that reflects the culture of this country, which is to allow individuals at the state level to make decisions about the quality of their lives.”

David Boies, the attorney who helped make same-sex marriage a constitutional right and is now trying to put an end to the war on cannabis.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $86M

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