Slight Shift in Tenor

There's a tight window for the senate agenda.

Daily Recap

It was another session that started slow for U.S plant-touching operators, with all of $1.8M notional trading the first half hour, while CAD names squirted higher from the opening bell; Canopy Growth paced the Canucks and the usual suspects tagged along.

Shortly after 11AM Marijuana Moment ran a story:

GOP Senator Says Schumer’s Plan To Pass Marijuana Banking Bill This Summer Is ‘Wishful Thinking.’

The headline was more hawkish than the article (the GOP Senator was referring to Schumer’s entire agenda, not banking, per se) but it raised a valid point: there are ten working sessions left to move banking through the senate finance committee much less the chamber if there is to be progress before their well-deserved August recess.

Given the technical level US cannabis ETF MSOS was sitting on when the article hit…

…the reaction to the news (lack thereof) was an ever-so-subtle shift in tenor/ departure from a norm that many of have come to expect after 881 days in the hole. It was almost surprising, actually, as if we’ve come to embrace this persistent, putrid, painful abuse.

It’s worth noting that while volumes remain largely absent, (plant-touching notional was ~$37M today, minus whatever double accounting goes on), MSOS had inflows ten of the last fifteen trading sessions (June 16-July 10): 2.3M shares worth $13.3M were created, along with two MSOX inflows (210K shares; $816,300) for about ~$14M, all-in.

In other news, Maryland sold $21 million it’s first week of adult-use and announced a $40M program to help social equity businesses (pay attention NY); Missouri signed banking access for canna companies into law; and Massachusetts set a new monthly record for sales ($152M) as it nears the $5 billion of sales since adult-use launched.

Sooner or later, all of these billions are gonna start adding up.

SPY 0.56%↑ QQQ 0.33%↑ IWM 0.76%↑ MSOS 1.63%↑