TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

For the trading (shortened) week ended July 9, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 4.5% compared to the prior week when it decreased by 1.1%. 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. 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.

Image by Herbal Hemp from Pixabay

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  2 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category:

VLNCF -11.4% and HEXO -10.1%. This article which states that “institutionally driven sector re-rating will be material” may very well be a clarion call to investors in the sector.

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 4.3% in the “Big Four” compared to the prior week when there was a decrease of 5.9%. For the 5th consecutive week, they all traded in lock-step, which is growing evidence that the MCCI will experience price pressure going forward. The worst performer of this group was Tilray, Inc. (TLRY) which fell 6.15% and I have alerted my private clients regarding my view about the status of their merger with Aphria Inc. (APHA). There was a decrease of 4.4% in the relative strength index compared to the prior week when there was a decrease of 18.1%. Let us see how this volatile sector has performed at the same time next week, shall we?