Editors' note: This article discusses one or more penny stocks and/or microcaps. Such stocks are easily manipulated; do your own careful due diligence.

MACRO

For the trading week ended July 17, my proprietary Canadian Cannabis Company Index (MCCCI) increased by a nominal 1.3% compared to last week when it increased by 4.6%. The index consists of 25 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. 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. As I’ve said here before, I believe there will be a pronounced reset in this sector, likely in Q3 or Q4 of this year. including but not limited to business failures, consolidation, and a significant downtrend in valuation. The survivors will be those companies that can operate profitably when the equilibrium price is established by the supply/demand dynamics. Based on the first 2 weeks of trading in Q3, I believe that we may be seeing an early sign of a “reversion to the mean” stability developing here. Now let’s look at this week’s good, bad, and ugly stocks.

MICRO THE GOOD

The following two stocks increased by more than 10% which is my metric for inclusion in this category: Aphria Inc. (NASDAQ: APHA + 18.6% and The Supreme Cannabis Company, Inc.(OTCQX: SPRWF) +13.3% Both APHA and SPRWF received bullish ratings from InvestorsObserver's Stock Sentiment Indicator. which may have been a contributing factor to their price spikes.

THE BAD

The following stock decreased by more than 10% which is my metric for inclusion in this category: WeedMD (PINK: WDDMF) -13.3%. This may be a “stock to watch” as there is breaking news about the company.

THE UGLY

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

RECAP

The relative strength index increased by ~ < 1% compared to last week’s increase of 4.6% Let’s see how this volatile sector has performed same time next week shall we?