Cannabis stocks went up in smoke in 2021.
But many could see higher highs this week.
That’s because Congress just scheduled a vote to federally legalize the drug, as noted by Marijuana Moment.
In fact, “The U.S. House of Representatives will vote next week on the Marijuana Opportunity, Reinvestment and Expungement act, a bill that would remove cannabis from the list of federally controlled substances. If passed, the bill would be sent to the Senate for approval before heading to President Joe Biden’s desk for his signature.”
While there’s still uncertainty President Biden will sign it into law, stocks are still move higher, including Canopy Growth (CGC), Tilray (TLRY), Sundial Growers (SNDL), Aurora Cannabis (ACB), and related ETFs, like Global X Cannabis ETF (POTX).
- The Dow is up 63 points to 34,822
- The S&P 500 is up 10 points to 4,546.50
- The NASDAQ is up about 37 points to 14,791.50
- Gold prices are down $27.61 to $1,929.77
- Bitcoin is up 6% to $47,219.74
- Oil prices are down $6.65 to $107.30
- The VIX is down slightly to 21.53
The war has created a big opportunity for commodity stocks.
Look at Cleveland-Cliffs (CLF), for example.
JPMorgan analyst Michael Glick noted that, “’Russia’s invasion a month ago nearly instantly set off a butterfly effect across the steel markets,’ with the impact only beginning to be felt in North America. When the invasion began, steel exports from Russia and Ukraine almost immediately stopped, while demand in North America is set to grow. That could push steel prices up to $1,500 a ton for 2022,” as noted by Barron’s.
GameStop (GME) is on the move again, as insiders pick up shares. Just last week, Chairman Ryan Cohen paid $10.2 million for 100,000 shares on March 22. Director Larry Cheng also paid $383,355 on March 21 for 4,000 shares for an average price of about $95.84.
If you buy GME, be cautious. The last time GME had an “unstoppable” rally, the stock plummeted, leaving a good deal of people holding the bag.