Another week of volatility on Wall Street has been savage for the cannabis stocks.
Look at the numbers. Canopy Growth Corp. (NASDAQ:CGC) is down another 5%. Tilray Inc. (NASDAQ:TLRY) dropped another 11%. Aphria Inc. (NASDAQ:APHA) lost another 12%.
The dozen cannabis stocks I track in my proprietary index are now down 29% in the past two weeks. We’re past correction territory now. This is formally a bear market on the “buzz” theme.
But get real. Even after that sickening lurch to the downside, my index is still up 58% year to date (YTD). That’s two months of rallying that not even two weeks of pain could erase.
It’s just a little rain on the parade. There’s no headline catalyst here and no reason to sell these stocks.
The only thing traders seem to be afraid of here is the notion that the market will take their recent gains away. They’re afraid of fear itself.
We’re holding onto the cannabis micro-caps in my IPO Edge portfolio. They’re up 109% in the aggregate with blue skies ahead.