The Opposite

The circle smirk turns upside down.

Daily Recap

The N.J. governor’s office is celebrating the opening of more than 100 cannabis stores in the state, and regulated cannabis sales are expected to exceed $1 billion this year.

“Reaching 100 cannabis dispensaries is a huge milestone that shows we are headed in the right direction.” Gov. Phil Murphy (D)

Blue Grass Special

Mitch McConnell (R-KY) announced he's stepping down as the Senate GOP leader in November after serving almost two decades in that role and the medical cannabis industry will officially launch in January. The irony is almost poetic.

“In the coming weeks and months, the Cabinet will promulgate additional regulations on how patients and caregivers can become cardholders and how individuals and businesses can apply for a medical cannabis business license.”

Red State Weed

Over the last several years, there has been a dramatic increase in retail + online sales of products containing hemp-derived cannabinoids.

An increasing number of states are poised to take legislative action to regulate these novel products as this burgeoning segment of the canna industry looks to build share without interstate commerce restrictions or the burden of IRC 280E.

Chicken salad, on rye, untoasted... and a cup of tea.

For the last few weeks, it felt like anything tangentially tied to risk was on fire—except, of course, for U.S. cannabis. Today, the opposite occurred: risk assets got smoked but the smokable sector took on additional risk.

With stocks and crypto getting clipped all session, U.S. cannabis ETF MSOS started the day sharply lower before an 8% midday rally, followed by a late fade to the flatline on more than twice the volume we had yesterday.

Below, we’ll dig into the price action, talk through the quiet part, weigh in on the great expectations + positioning thereof, offer a volatility PSA, check state-level price points and weigh in on the hemp-derived stuff.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $133M ($80M)

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