Tears for Fears

Weekend FUD spooks the space.

Daily Recap

In the fourteen months since the last failed attempt at meaningful federal cannabis reform, weed stocks have tanked, investments have dried up, sales have stagnated and spending on growth has withered.

The industry is now placing its hope in the government agency that’s responsible for much of its misery in the first place: the Drug Enforcement Administration.

“President Joe Biden raised marijuana reform in his State of the Union address on Thursday night, pushing the probability that a rescheduling decision is made in the next few months to 80%.” -Bloomberg Intelligence

New York Nicks

Shuttering New York businesses accused of selling cannabis without a license could be one of the first agreements reached in the state budget as the long-anticipated illegal weed crackdown nears.

Democratic lawmakers are confident that they’ll be able to come to an accord with Governor Kathy Hochul to crack down on the retailers as part of a broader effort to aid the struggling legal cannabis marketplace in the state.

Across the River

New Jersey’s burgeoning cannabis market has now earned more than $1.3 billion since the beginning of recreational cannabis sales in April 2022 and has eclipsed $2 billion in total sales since the beginning of 2018.

The more than 100 medicinal + recreational cannabis dispensaries across the state— including small, local operators—are expected to see sales beyond $1 billion in 2024.

“These are early signs of the potential of this market. Sales have grown steadily since Governor Murphy began the work to reform New Jersey’s cannabis market.”

INCOMING!

A weekend article highlighting potential cannabis tensions within the DEA weighed on the space as industry stakeholders reflected on the sources and their motivation. U.S. canna ETF lost 7.5% on the day as it continues it’s month-long slog in the absence of clarity surrounding the timing of federal catalysts.

Below, we’ll talk through today’s price action, walk through the WSJ article and access the situation, review and preview earnings ahead of a busy week, and update our field position and technical levels because that’s. what. we. do.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $108M ($73M)

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