The Canadian Cannabis Report - Monday, Aug. 2

For the trading week ended July 30, my proprietary Canadian Cannabis Company Index (MCCCI) was unchanged from the prior week when it decreased by a de minimis 1.1%.

The index consists of 23 stocks, many of which are among the most widely held holdings of the 3 ETFs (NY: MJ, CNBS, and THCX) that I consider to be a reliable barometer of the Canadian cannabis sector. MCCCI's differentiated business model is both weighted and market capitalization-based because I believe that this approach best represents the current landscape of the Canadian cannabis sector.

The Good

There was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: VLNCF + 11.3%. The Valens Company Inc. has traded erratically recently, and last week’s performance is essentially a rebound from that pattern.

The Bad

There were no stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category. HEXO Corp. (HEXO) continued to trend downward and decreased 4.3%. I have issued another trading alert to my private clients who closely follow this high-beta stock.

The Ugly

There were no stocks that decreased by 20% or more, which is my metric for inclusion in this category.

Recap

There was a decrease of 1.3% in the “Big Four” compared to the prior week when there was no change. There was a decrease of 5.3% in the relative strength index compared to the prior week when there was a increase of 8.6%.

Thus far, the summer of 2021 has been lackluster and then some, despite rampant speculation that there may be pro-cannabis legislation on the horizon. Let us see how this volatile sector has performed at the same time next week, shall we?