People are talking about a recession forcing more states to accelerate their cannabis legalization efforts. I don’t really see it happening yet, but it’s nice to see the stocks rebounding now.
My guess is that these stocks were simply oversold, and the short sellers are covering their positions. Whether that’s an illusion or a sign of real recovery remains to be seen.
We’ll play the recovery when it comes. As for the illusion, we can afford to remain patient before making any big move in this space.
After all, a stock like Tilray Inc. (NASDAQ:TLRY) can surge 140% from the depths like it did this week. But even with that bounce, it’s still down a harrowing 87% over the past 12 months.
When shareholders have accumulated that much pain, even the routine bounces can look astounding. We can say that about the market as a whole these days. Keep your powder dry and your eyes open.