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Yesterday, voters in all five states where it was on the ballot—Arizona, Mississippi, Montana, New Jersey and South Dakota—said they were in favor of legalization, and in every case, the majority vote was clearly positive, not even close.

With all five states that voted on marijuana proposals last week saying “Yes,” the trend toward nationwide legalization is now clearer than ever—and marijuana investors have been acting accordingly.

Three weeks ago, when the marijuana sector seemed extremely extended to the upside, we sold 25% of each of the positions in our four U.S. multi-state operators

With 32 stocks in our portfolio and a market that’s going through all manner of gyrations right now, it’s time to part ways with a few of our underperforming positions.

The market remains in the dumps, and while some beaten-down growth names have found support, many are still getting hit on earnings and we’re even seeing selling spread to the broad market.

The major indexes were fine today, with the Dow up 45 points and the Nasdaq down 33 points. But that masked a horror show under the surface—the average stock we follow was off more than 2%, similar to growth-oriented indexes like the Russell 2000 Growth Index (IWO, down 2%) or the Ark Innovation Fund (ARKK, off 3.3%).

Investors are being challenged with some of the strangest stretches in market history. On the surface, the market looks to be in great position. Stock indexes are hitting or are near record highs, but there is a lot of commotion below the surface. As it stands, roughly 40% of all stocks within the S&P 500 are below their 200-day moving average, which typically indicates bear market action. However, technology has been incredibly strong, especially the mega-cap stocks like AAPL, MSFT, AMZN, etc. And 40% of the S&P 500 is comprised of technology stocks, hence the current 17.6% return in 2021.

Only a handful “stapled products"—less than 10—exist in the entire world.

Today three of our covered calls will expire. The great news, all three trades will be closed for nice profits!

Deep learning technologies are advancing faster than ever which leaves AI companies primed to disrupt the old guard, like the world of M&A.

Cannabis stocks are astonishingly weak following the nomination of Rep. Mike Johnson (R-LA) as House speaker. He has always opposed cannabis legislation. So, the fear is that Secure and Fair Enforcement Regulation (SAFER) Banking Act reform (allowing banks to serve cannabis companies) cannot get out of the House. This is probably true. However, Senate leaders could put the reform in must-pass legislation, and the House may well accept it, given how many current House members have approved the bill in the past.

A timber investment can help reinforce your portfolio against inflation while adding some highly valuable diversification. This timber REIT and ETF are a good place to start.

WHAT TO DO NOW: After selling half of DoubleVerify (DV) yesterday, we’re going to prune our position in Celsius (CELH), which has been stalling out for about a month and a half and is now cracking some near-term support. The big-picture chart isn’t bad, so we’ll hold a good-sized stake, but we’ll trim here and hold the cash. That will leave us with around 36% in cash.

Our cannabis stocks rose nicely yesterday on news that President Biden has asked the Justice Department (DOJ) and the Department of Health and Human Services (HHS) to review marijuana’s federal scheduling status.

If news of Michael Burry’s big bearish bet last month spooked you, ignore it. The articles quoting his $1.6 billion bearish position made some serious miscalculations.

The sellers continued to do their work to the market this week, and instead of the selling being concentrated in “just” growth titles, the weakness is now spreading to most nooks and crannies of the market. Coming into today, all of the major indexes were lower by 2% to 4%, with the worst performers the broader (small- and mid-cap) indexes.