Cannabis Weak as Gold Achieves Another High

If we are all unanimous on the desire to achieve a sustained gold price to spark a rally in Canadian resource stocks, we need only hope that the US’ aggressive and bi-polar approach to global economics continues unabated. With infantile statecraft that is the fuel for smirks and jokes among the erstwhile allies of the United States, America’s glaring bipolar reversals of sentiment toward China – is nonetheless becoming a bankable trade in markets.

Too bad for the cannabis industry that it depends on a positive broad market environment for its own issuers’ health. Since that would appear to be off the table for the time being, cannabis stocks appear poised to head lower in this final week of August.

Not that shrewd investors won’t thank the market gods for such a wonderful opportunity to pick up well performing stocks at increasingly attractive prices. But in some cases, the plummeting share prices present an existential question.

While CannTrust Holdings remains the poster child for how not to become a billion dollar cannabis company, others – like James E. Wagner Cultivation and Organigram Holdings – are building solid businesses with real revenue and – get this – EBITDA and profit! I know…amazing.

Gold, on the other hand – the immediate and direct beneficiary of Trump’s own brand of Doublespeak – hit yet another 7 year high overnight in Asian markets, touching a high of US$1,554 before dropping back to $1,530.

Why should you care if you’re a cannabis investor who has no interest in gold? As stated above, the cannabis stocks need a background of broad market stability to rise against, and gold’s increasingly muscular moves to the upside (higher highs and higher lows – technically a textbook case for further upside) portends more broad market weakness. Meaning, stocks ain’t gonna catch a bit til gold retreats.

In the meantime, resist the temptation to become a sector-centric victim; the market will teach you time and time again that sector agnosticism is the only dogma worthwhile for a real trader to hold.

Another week of lower lows and lower highs among cannabis issuers signals continuing weakness as the continued geopolitical vandalism of Trump’s open mouth precludes any joint solution from the G7 summit.

• California Says Its Cannabis Revenue Has Fallen Short Of Estimates, Despite Gains -NPR
  California’s cannabis excise tax generated only $74.2 million in the second quarter of 2019, the state says, announcing numbers that are short of projections that were set months ago.
• Industry says UK laws deterring cannabis investment – Financial Times
  UK anti-money laundering laws are deterring investment in the cannabis industry in Europe, according to lawyers and industry executives.
• 48North Ships First Order of Cannabis to AGLC; 48North Cannabis Products Now Available for Retail Sale in Alberta
  48North Cannabis Corp. (TSXV: NRTH) announced today that it has successfully shipped its first order of cannabis to the Alberta Gaming, Liquor and Cannabis Commission for retail sale.
• 4Front Announces Voluntary Lock-Up And Approves Option Grants
  4Front Ventures Corp. announces that certain of its founders, early shareholders, and other key stakeholders have entered into a voluntary lock-up agreement.
• Khiron Life Sciences Reports Second Quarter Fiscal 2019 Financial Results
  Advances multi-country operator strategy with acquisition of NettaGrowth, securing first medical THC and CBD cannabis license and cultivation capacity in Uruguay, and potential for access to Brazilian
• CBDOilUsers.com Releases List of Best CBD Oil Sales for Labor Day
  CBDOilUsers.com, a leading CBD oil education website for consumers, has published its list of the best Labor Day CBD sales from top brands, available at https://cbdoilusers.com/labor-day-cbd-oil-sales
• Harborside Engages Generation Advisors and Mackie Research for Market Making Services
  Harborside Inc. (“Harborside” or the “Company”) (CSE: HBOR), is pleased to announce that, subject to regulatory approval, it has retained Generation Advisors Inc. (“Generation”) and Mackie Research Capital
• TruTrace Technologies Announces Fiscal 2019 Financial and Operating Results
  TruTrace Technologies Inc. (CSE: TTT; OTCQB: TTTSF) (“TruTrace” or the “Company”), creator of the first fully-integrated blockchain platform that registers and tracks intellectual property for the cannabis

Original article: Cannabis Weak as Gold Achieves Another High

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