Canopy Growth Corp (TSE:WEED) (NYSE:CGC) (FRA:11L1) staged an impressive comeback this morning, raising the rest of the cannabis complex along with it. Constructive price action in both CGC and Horizons Marijuana Life Sciences Index ETF (HMMJ) give hope that the furious selling dogging the sector has—at least temporarily—abated.

Although most risk assets are doing well, cannabis stocks are particularly buoyant. It all begins with sector leader Canopy Growth, which blasted through its 200-Day moving average ($32.28) on-open, and never looked back. Currently, CGC is higher by $2.15 to $34.31 (↑6.68%), almost twice that of the broad sector as defined by HMMJ (↑3.57%).

Most importantly, Canopy Growth closed above yesterday’s high on an hourly basis, making a discernible high-low scenario likely. That doesn’t guarantee the stock won’t continue selling off in the coming days, but it does give investors a respite from the constant pounding unleashed on the stock. Prior to today, CGC hadn’t printed a closing high above the prior days high since November 7th—nine sessions ago. Assuming risk assets don’t capitulate in the coming days, we’ll be looking for the 200-Day MA to provide a nice backstop for the expected hourly higher-low to form. However, any closing low above $31.18 would technically qualify.

Some notable buying is also occurring in some beaten-up junior names of interest.

Wayland Group is currently higher $0.11 to $1.28 (↑9.40%) on a surge of buying at the open. The company EU-GMP certified company with tentacles in Germany, Italy, Switzerland and South America was recently in studio with Midas Group Founder James West. Among the noteworthy revelations elucidated by Wayland CEO Ben Ward is the company’s upcoming pivot into Asia—a rare occurrence in the cannabis space. While downplaying China’s involvement in the cannabis industry for the foreseeable future, Mr. Ward had this to say:

“…But Japan is an exciting market, especially for CBD products, and I think we’ll be looking at something there in the near future…”

Wayland Group CEO Ben Ward sees the company as trendsetters in the cannabis space

We look forward to hearing upcoming details of that transaction in due course.

Certainly, the rally in cannabis stocks hasn’t been constrained to a particular class. Everyone is participating in uniform fashion across the spectrum.

Company Last Change % Change Volume Wayland Group 1.28 0.11 9.40% 762,263 Emerald Health Therapeutics Inc. 3.82 0.26 7.30% 383,987 Canopy Growth Corporation 34.06 1.9 5.91% 3,946,770 OrganiGram Holdings Inc 5.43 0.23 4.42% 304,336 Vivo Cannabis Inc. 0.99 0.04 4.21% 290,602 The Supreme Cannabis Company Inc. 1.58 0.06 3.95% 497,965 Cronos Group Inc. 8.52 0.32 3.85% 2,601,299 Isodiol International Inc. 1.65 0.06 3.77% 271,218 The Green Organic Dutchman Holdings 3.27 0.11 3.48% 1,703,240 Tilray Inc. 107.61 3.61 3.47% 634,132

Final Thoughts

Before we get too excited about the nature of today’s rally, some important qualifiers of note. Sector benchmark HMMJ is still trading below its 200-Day MA ($18.85), while Tier-1’s Aphria and Aurora Cannabis still have ground to cover to get there. Volumes are also light ahead of U.S. Thanksgiving, suggesting the action is driven more by a soft ask than robust buying.

Still, investors will gladly take the constructive action witnessed in Canopy Growth and associated securities. It sets the stage for higher-low base building within the sector, perhaps culminating in a stronger bullish impulse ahead should everyone join the north side of ‘200’.