Marijuana News Today: Pot Stocks Continue to Soar After Canadian Pot Legalization Date Announced

June 22nd, 20183:18 am @

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marijuana news today 21 June
iStock.com/Aleksandr_Kravtsov

Marijuana News Today

In the marijuana news today, we now have an official Canadian marijuana legalization date that has only continued to push pot stocks into the stratosphere. In other words, it’s a great day (and week) to be a pot stock bull.

Yesterday, the Marijuana News article was centered on the passing of Bill C-45, assuring that marijuana will, in fact, be legal in Canada in all forms. And soon.

While I (and most of the media) was a little premature in declaring that pot would be legal by September, Prime Minister Justin Trudeau instead came out and declared that October 17, 2018, would be the official date that the legalization would be implemented. (Source: “Marijuana to be legal in Canada starting October 17, Trudeau confirms,” Global News, June 20, 2018.)

So is marijuana legal in Canada? No, not yet. Or at least, recreational marijuana is still technically illegal until that Canadian marijuana legalization date of October 17.

But that hasn’t stopped the marijuana industry from going absolutely bonkers in the wake of this monumental achievement for the drug.

Canada is the first industrialized nation to legalize recreational marijuana on a federal level and the second country to do it, period. The first country was the small and relatively underdeveloped Uruguay, making Canada very much the first mover in this industry.

Yesterday, we delved into the particulars of the legal process and what yet lies ahead for the pot industry. But let’s ditch politics for the marijuana news today and instead focus on what we’re all here for: stocks.

Marijuana stocks are surging with this bill, as to be expected.

In fact, one of the main reasons I declared this summer to have the potential to be some of the best months we’ve seen in the marijuana industry in a long time is almost entirely due to the massive runs expected to follow Canadian marijuana legalization.

After all, the announcement of the Canadian marijuana legalization date is just one step on a multi-tiered process that will likely contain several more big jumps going forward.

Now, here’s the not-so-good news.

I believe that corrections will follow these big jumps. After all, if there’s one thing we’ve seen out of the marijuana industry, it’s often a fervent gobbling up of marijuana stocks by over-eager investors, market reconsideration, and then a drawback immediately following bull runs.

It has happened time and again, and there’s a decent chance that now will be no exception.

But I believe that whether you’re a day trader or a long-term holder, it won’t have too negative of an impact on your marijuana plays.

For day traders, diligence is the key; be ready to dump quickly as the notoriously volatile marijuana market can come to haunt you otherwise.

For long-term buyers, holding these stocks through the ups and downs of the boom-bust movement is still the right play and—over time—there are large gains to be made.

CGC Stock News

While we’ve focused a lot on Canopy Growth Corp (NYSE:CGC) this week, that’s for good reason.

CGC stock, as usual, is leading the pack.

Chart courtesy of StockCharts.com

What has already been a stellar year—made all the more impressive by the fact that so many marijuana companies have struggled in 2018—is only getting better for Canopy Growth stock with the marijuana news today.

The company is up a whopping 16% over the past four days, putting smiles on the faces of many investors who have been reading my work for the past few months.

CGC stock has been, hands down, one of the best marijuana stocks in 2018, if not the best.

Its highs are higher than the competition, its lows are lower, and the company seems poised to be successful in the long term, in keeping with my personal preference for long-term strategies in the market.

Aurora Cannabis Stock

While CGC stock is certainly impressive, another old favorite of mine isn’t too far behind. Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) is up nearly double-digits in the past four days.

Aurora Cannabis stock sits a hair under 10% on the week, and the company is among one of the more exciting in the industry.

Of course, I do view Aurora Cannabis stock as a riskier play than CGC stock as it has been far more aggressive in its acquisition strategies than Canopy.

In the eyes of some investors, this speaks to a need for the company to play catch-up with the industry leader.

In other views, Aurora’s buys were too rash, too expensive, and won’t pay off.

I don’t cotton to either of those positions but I do acknowledge their legitimacy.

They aren’t totally unfounded claims, but I believe that Aurora Cannabis stock is positioned well for the long-term future of the industry, even if that may mean it performs slightly worse compared to CGC stock.

Analyst Take

The pot industry is in a state of euphoria right now with the Canadian marijuana legalization date announced.

While that won’t last forever, it does allow many marijuana bulls to come away with a nice bit of gains in the near term.

The marijuana stock market is on fire right now and will be for the next few days, at least.

While a correction may soon be on the way, that shouldn’t stop both long- and short-term buyers from making money, if the market is played right.

In other words: the market is rife with opportunity right now for those willing to seize it.

Article source: https://www.profitconfidential.com/marijuana/marijuana-news-today-pot-stocks-soar-canadian-marijuana-legalization-date-announced/