Last week, it was Trump’s tariffs that sent stocks running…
And again this week, something big just jolted an entire corner of the market out of its slump…
It sent certain tickers skyrocketing, and the ripple effect hit the entire sector.
Speaking of massive stock moves, if you want to start your week off with a bang, look no further than my Monday Setup…
Every Monday, the market kicks back into gear after a weekend of rest… And that reset creates a unique opportunity!
Right at 9:30 am Eastern, as the opening bell rings, we look for a very specific setup that often shows up like clockwork.
And it has delivered some incredible wins!
Take yesterday…
Equillium Inc. (NASDAQ: EQ) had a morning run of 155%* after announcing a large capital infusion.
These are the kinds of morning spikes we hunt for every Monday!
Want to learn how to spot them for yourself?
Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
The big sector move this week was sparked by a surprising political twist that could completely reshape an $80 billion industry and open the door for a flood of new investment.
The question is, is this just another headline-driven pop?
Table of Contents
Weed Stocks: Is This the Next Big Green Rush?
Cannabis stocks lit up the market Monday after a Wall Street Journal report suggested Trump is considering reclassifying marijuana to a lower danger level under federal law.
We’re not talking about a little bounce — we’re talking about a full-on sector rally.
Cannabis ETFs AdvisorShares Pure U.S. Cannabis ETF (MSOS) and Amplify Alternative Harvest ETF (MJ) surged nearly 16% and 15%, respectively.
Why the Big Move?
The buzz came after Trump told reporters he’s “looking at reclassification,” a shift that could move marijuana from Schedule I (the same category as heroin and cocaine) to Schedule III (alongside steroids and Tylenol with codeine).
That change could be a game-changer for the industry. It could mean:
- Lower taxes for cannabis companies.
- More institutional investment (big funds typically avoid Schedule I companies).
- Improved access to banking and financing.
Investors and the industry are very optimistic that all of this will happen…
As Irwin Simon, CEO of cannabis company Tilray, put it, “Trump gets things done… he wouldn’t be talking about it if he’s not going to get something done.”
Trading Perspective
This isn’t the first time cannabis headlines have sparked rallies — but many past pops faded quickly.
If reclassification actually happens, it could transform the $80 billion cannabis market.
But in the short term, traders are front-running the news.
If you’re trading these stocks:
- Treat it as a catalyst trade first: It’s all about the price action. Don’t marry the stock.
- Know your levels: Identify key resistance points from previous rallies.
- Size your position appropriately: Sub-$1 stocks can move fast… in both directions.
My Cannabis Watchlist
Here are some key names that are on my radar while this big story develops…
Canopy Growth Corp. (NASDAQ: CGC):
CGC is one of the largest Canadian producers in the sector, with a broad portfolio of brands and a heavy push into the U.S. market through strategic partnerships.
This stock is known for volatility and headline-driven spikes.
Tilray Brands (NASDAQ: TLRY):
Tilray is a global player with operations in Canada, Europe, and the U.S., focused on both consumer products and medical sales.
It frequently trades as a sector sentiment gauge due to its liquidity and name recognition.
Cronos Group (NASDAQ: CRON):
Backed by tobacco giant Altria, Cronos has a strong cash position and a focus on premium products.
CRON is often seen as a safer balance-sheet play in an otherwise high-risk space.
Trulieve Cannabis (OTC: TCNNF):
Truleave is a leading U.S. MSO with a dominant market share in Florida and growing presence in other states.
TCNNF is an OTC stock, and with that comes low liquidity, extra volatility, and risk. Use caution when trading it.
Verano Holdings (OTC: VRNOF):
Another OTC ticker, Verano is a major U.S. multi-state operator (MSO) with retail dispensaries and cultivation facilities in key markets.
The company is known for steady expansion and strong positioning in limited-license states.
My Final Thoughts…
Weed stocks are hot right now, but this is still a speculative trade driven by political chatter, not actual policy change… yet.
If you’re looking to trade the hype, just remember:
- Headlines fade.
- Resistance is real.
- The market doesn’t care about “should happen,” it cares about “what’s actually signed into law.”
As always, have a plan…
These stocks offer enormous opportunities if you acknowledge the risk and
play them right.
Trade smart and don’t get smoked!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
Do you know how to play one of my favorite moves, the short squeeze?
If you’re a new trader, here’s how to play it safe and still profit big.
These are the stock scans I run every morning.