SYNOPSIS
North American stock prices declined again last week, after a sharp decline the week before. Volatility spiked up again to about 16, before settling back to 14 by the end of Friday trading. While we’ve been waiting for more evidence of either a serious bear move, or a rebound to new highs again, we’ll be covering the marijuana stocks theme again this week. While waiting for official legalization of cannabis for recreational use in Canada next July (tentatively), we may actually be seeing an oversupply of the product short-term; and the stock prices of the publicly-traded major growers seem to be reflecting this (on average).
PTP… Our ProfiTrend Portfolio APAR (annualized price appreciation rate) jumped to 57%. The S&P 500 APAR turned more negative, and the S&P/TSX Composite Index APAR improved from a negative -7% the previous week to +1%.
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Last Week in the Major Indexes… All of the major North American indexes that we track fell last week, except for the S&P/TSX Venture Index, which rose almost 1%.
Last Week in the Sectors… Once again only the Utilities group have a positive trend value of any significance among both S&P 500 and S&P/TSX Composite Index stocks.
PTA Perspective… Marijuana Stocks Update
We promised that we wouldn’t bombard you with a lot pot stocks reporting, when we first introduced that theme to our web site last November. We decided to offer coverage on that niche market at that time as an experiment in following an equity marketplace in its early stages. (You have access to our weekly marijuana stock trend updates in the Data & Charts Workbooks.) We provided a minor update in early June to discuss the Horizons BetaPro Marijuana stocks ETF (HMMJ)… the first of its kind in the world. This week we provide a bit more background on what’s been happening with HMMJ, and the pot stocks market overall. We also caution you about the get-rich-quick fraudsters out there, and let you know more about the reality of cannabis stocks as an investment.