RE:Market reaction to legislation?It has nothing to do with news from the US. It is just market correction. All Marijuana companies were overvalued and it was bound to happen after reaching such high points based on speculations. The recent announcement was supposed to be the fuel to keep it lit but it turned out to be nothing. Nothing good or bad, just not what investors were waiting for.
All signs were pointing the same way. All MJ stocks had their shares diluted at lower but reasonable values compared to two to three weeks before financing. MJ companies held on from getting financing until the stocks exploded. Then they were able to get better deals as securites hurried to close the deals. Both securites and MJ companies got good deals as the shares rose. You have to row then the tides come in.
All MJ shares were diluted, sudden increase in price without much improvement in profits meant they were overpriced. After initial spike, volumes traded were steadly decreasing, followed by volumes pushing the share values down over couple days. Announcement turned out to be nothing (slightly negative) and all MJ companies were trying to make something positive out of this and releasing statements. Then smart investors were just selling.
The market will correct it self and form new or reach previous support lines. Time to buy when it is low. Don't miss the dip investors.