Weed stocks were set to add to the week’s gains early Wednesday following Friday’s criticism of marijuana restrictions by Vice President Kamala Harris. Canopy Growth stock led the gains Wednesday while rivals Tilray Brands (TLRY), Cronos Group (CRON) and Aurora Cannabis (ACB) traded higher.
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Canopy Growth (CGC) stock rallied 13% Wednesday morning, on track for its fourth straight daily gain. CGC shares spiked more than 24% so far this week through Tuesday’s close, driven by a 20.5% leap Monday. Still, Canopy Growth stock has dropped 25% so far this year.
Tilray swung 2.5% higher premarket Wednesday, which puts shares modestly below their 200-day line if the move holds. TLRY stock jumped 11% for the week through Tuesday, MarketSurge charts show. Tilray has retreated about 16.5% in 2024.
Cronos stock surged more than 3% Wednesday morning, adding to its 9% gain for the week through Tuesday’s close. CRON stock advanced nearly 10% so far this year. Shares are working up the right side of a cup base with a 2.64 buy point.
Aurora Cannabis climbed 1.7% early Wednesday, on pace to recover its modest Tuesday decline. ACB stock spiked about 15% on the week but is down nearly 24% in 2024.
The Advisor Pure US Cannabis ETF (MSOS) was little-changed early Wednesday after retreating 3.8% Tuesday. MSOS shares have trailed the gains from individual marijuana stocks since VP Harris’ comments and are only up 2.6% for the week. Still, the ETF rallied nearly 30% so far this year. MSOS is basing with a 10.64 buy point.
VP Harris Calls For Marijuana Reclassification
VP Harris during a White House event Friday called the current federal classification of marijuana “absurd” and urged the Drug Enforcement Administration to expedite rescheduling it as a less-serious drug.
Marijuana at the federal level is a Schedule I drug under the Controlled Substances Act, designating it among the most dangerous drugs with no medical uses and a high abuse potential. Other Schedule I substances include heroin, LSD and ecstasy.
“Nobody should have to go to jail for smoking weed,” Harris said at the roundtable event, which included people who received pardons from President Joe Biden for marijuana-related offenses, Kentucky Gov. Andy Beshear (D) and rapper Fat Joe.
“I cannot emphasize enough that they [the DEA] need to get to it as quickly as possible. We need to have a resolution based on their findings and assessment,” Harris said. “Marijuana is considered as dangerous as heroin and more dangerous than fentanyl, which is absurd, not to mention patently unfair.”
Marijuana proponents hope it will be reclassified to a Schedule III drug, which the Department of Heath and Human Services recommended in August. Schedule III drugs are substances with a moderate to low potential for physical or psychological dependence and include ketamine, anabolic steroids and testosterone.
Schedule II drugs like fentanyl, oxycodone, Adderall and Ritalin have some medical uses, but are considered dangerous with a high potential for abuse and dependence. The CSA classes drugs into five categories, with Schedule V drugs having the lowest risk for potential dependence and abuse.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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