For the trading week ended October 22, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 2.6% compared to the prior week when it decreased by 4.3%. The index consists of 23 stocks, many of which are among the most widely held holdings of the 3 ETFs (MJ, CNBS, and THCX) that I consider to be a reliable barometer of the Canadian cannabis sector.

Image by Herbal Hemp from Pixabay

The MCCCIs 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. Now let us look at this week’s good, bad, and ugly stocks.

The Good

There were no stocks that increased by more than 10% which is my metric for inclusion in this category.

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.

The Ugly

There were no stocks that decreased by 20% or more, which is my metric for inclusion in this category: VALUATION METRIC REVIEW There was an increase of 1.3% in the “Big Four” compared to the prior week when there was no change.

Recap

There was a decrease of 2.6% in the relative strength index compared to the prior week when there was no change. The trading range of the MCCCI has further narrowed in Q4 as evidenced by this week’s lackluster performance. This has reinforced the base case articulated in my prior report that the status quo may be the rule rather than the exception for the foreseeable future.

Let us see how this volatile sector has performed at the same time next week shall we?