From Ian Cooper, Author Trigger Point Trade Alerts
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.
As reported on March 25, “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).
Another way to trade the cannabis story is with an ETF, like the ETFMG Alternative Harvest ETF (MJ), which offers investors access to the Canadian and global marijuana sector. The fund tracks an index of stocks across the globe that are engaged in the legal cultivation, production, marketing or distribution of cannabis products for either medical or nonmedical purposes.
MJ also holds stocks of companies that trade or produce tobacco or tobacco products, or fertilizers, plant foods, pesticides or growing equipment for cannabis or tobacco. In addition, the fund can hold pharmaceutical companies that produce, market or distribute drug products that use cannabinoids.
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