The announcement on Monday of President Trump’s new budget seemed to usher a sense of ease back into the stock exchanges after last week’s steepest drops in nearly two years, as overall, Wall Street rallied. The new budget proposal, which promises to drastically reduce deficits over the next decade, coincided with promising technical market indicators, such as the launch of Evolve Marijuana ETF (TSX:SEED) in Toronto, which, altogether, instilled confidence across the marijuana stocks sector and investors.
Investors seeking marijuana stocks to invest in for 2018 are encouraged by the Evolve ETF launch.
Evolve ETF President and CEO, Raj Lala, offered a simple statement as to the timing of the new marijuana ETF launch, citing the availability of funding and the uncertain status of marijuana in the U.S. as significant factors in the decision to invest in more global opportunities. Evolve ETF marijuana stocks in Canada celebrated its first day on the Toronto Stock Exchange with Lala ringing the market’s opening bell and ended the day with ETF stock values at CAD $19.99 per share.
Evolve ETF was not the only marijuana-related ETF to make a major listing decision this week. Another new ETF, which only launched Wednesday – Horizons Emerging Marijuana Growers Index (HMJR) – chose not to list on the Index in favor of inclusion on the Aequitas Neo Exchange.
Considering the same regulatory factors as Evolve, but, coming to a different conclusion, Horizons’ head of sales strategist stated, “Our upcoming listing for HMJR will have exposure to both foreign (mostly from Australia, which has a dozen marijuana listings) and Canadian-listed companies that have operations in the U.S. Listing on NEO gave us the flexibility to hold more stocks without exposure.”
(For more on this story, read MPX to be Included on New Index for Marijuana Stocks).
The difficulties of last week among marijuana stocks companies has been explained by experts as a market correction.
As of Monday, activity on the marijuana stocks markets was quiet. This translated to small, but, incremental individual stock gains, paired with small losses in marijuana stocks values among individual companies. All the while, investors exercised patience in early week trading.
A jump of 200 points in Canada’s main stock index, however, seemed to indicate a settling down among global markets post last week’s correction. By the end of the day, The North American Marijuana Index finished at 281.07 points, a 0.52% gain from the start of the day.
Marijuana stocks in the U.S. on the Index saw gains of 0.95% and their Canadian counterparts saw gains of 0.34%.
Top gainers on Monday among individual companies, none more than 10%, were MPX Bioceutical Corporation (MPX:CNX), Cannabics Pharmaceuticals Inc (CNBX) and CannTrust Holdings Inc (TRST:CNX). Representing major cannabis funds, Horizons Marijuana Life Sciences ETF (HMMJ.TO) closed Monday with a gain of 0.27% at $18.81 per share.
On the opposite end of the spectrum, small losses were experienced Monday among certain marijuana stocks companies:
Solis Tek Inc (SLTK), MariMed Inc (MRMD) and Canopy Growth Corp (WEED) was down 4.51%. Among major marijuana funds, ETFMG Alternative Harvest ETF (MJX) closed the day with a 1.92% loss among stocks at $31.59 per share.
The end of a market correction by some standards, other analysts expressed hesitance at drawing conclusions from this recent activity, saying “It’s too soon to tell.”
As is often the case in the world of marijuana stocks, gathering feedback from different reputable sources, patiently observing sector trends, and knowing when to employ a wait-and-see approach are often part of the territory of finding marijuana stocks to invest in during 2018.
(For more on the market correction and marijuana stock gains, read Nearly 20% Gains for Marijuana Stocks Last Month).