Canopy Growth Corp (TSE:WEED) (NYSE:CGC) (FRA:11L1) continues to be—what Hall of Fame slugger Reggie Jackson once coined—the straw that stirs the drink in the cannabis sector. Today, the company’s morning leadership triggered a chain reaction which set the tone for the rest of the market.

The undisputed sector champ smashed through the key technical resistance at $40/share (post-NYSE listing high) with ease in the session’s opening minutes. This triggered a flurry of panic buying in the rest of the sector, as investors and swing traders sniffed out an opportunity to add to positions. We predicted as much in yesterday’s article titled Canopy Growth Corp Nears Post-NYSE Highs With Serious Momentum Behind It:

“At this point, most of the cannabis sector has not participated with Canopy’s notable move. Look for others to join the party in Canopy Growth Decidedly breaks the key $40 near-term level. The pre-legalization trade investors were anticipating may be late, but better late than never.”

To exemplify how proficient the early break, consider that volume in the first 15-minutes was on par with the corresponding volume upon its May 24 NYSE debut—arguably Canopy Growth crowning achievement as a public company. At 3.72 million shares traded on the NYSE (CGC), the company just set a new post-NYSE benchmark.

Unfortunately, the morning buying spree did not last—for Canopy Growth that is. Just before 11:00am, a mass wave of selling enveloped the name, driving down prices over seven percent within a 40-minute stretch. The broad market S&P 500 and NASDAQ exchanges also experienced minor capitulations around that time, provoking greater profit taking than perhaps was otherwise warranted.

After scratching its way back during the afternoon session, Canopy Growth edged close enough to challenge its post-NYSE high after 3:00pm. That attempt was resolutely blocked, although a decent finish leaves prices just below the $40.00 CDN threshold. Unlike today’s decisive break higher, tomorrow could experience a great deal of whipsaw action within the first 30 minutes of trade.

Although Canopy dropped back to finish near-even on the session, WEED’s early strength today set off a sector-wide domino effect. The sector held on to the entirety of its gains, confirming the pre-legalization rally is not a mirage. The Midas Letter Cannabis Composite Index soared ↑2.88%, lead by Aurora Cannabis and most of the mid-majors.

OrganiGram Holdings Inc. finished at a new all-time closing high ($5.49/share), demonstrating significant relative strength all session. Volume was almost five times the 50-day median average, attaining its daily average within the first 15 minutes of the session. The company announced an expanded cultivation license from Health Canada this morning, but the move was largely technically driven.

Green Organic Dutchman Holdings Ltd. (TGOD) continued to soar, closing higher by $0.70 to $7.69/share (↑10.01%). This marked the sixth straight session of expansive price gains, driven by the company’s advanced negotiations with multiple international companies. It’s anybody’s guess how high the stock could climb, which presumably is driven by the theoretical premium an acquiring company would pay in a takeout scenario. Whether the company is looking to be bought out, or enter some limited partnership agreement is still a matter of debate.

In a sign the pre-legalization trade is indeed in full swing, embattled Newstrike Resources Ltd. jumped ↑14.71% on no news. Volume was strong, chiming-in at the 2nd highest level in eleven weeks. When the deep underperformers start dotting the biggest gainers list, it’s a telltale sign that bulls control the market.

Other notable movers include:

Company Last Change % Change Volume Newstrike Resources Ltd. 0.78 0.1o 14.71% 5.07m OrganiGram Holdings Inc 5.49 0.49 9.80% 2.84m MYM Nutraceuticals Inc 1.4 0.1o 7.69% 762.53k Aurora Cannabis Inc. 8.71 0.53 6.48% 12.68m MedReleaf Corp. 26.5 1.49 5.96% 1.06m

To the downside:

Company Last Change % Change Volume InMed Pharmaceuticals Inc. 0.98 -0.03 -2.97% 407.12k Cannabix Technologies Inc 1.63 -0.04 -2.40% 297.79k Invictus MD Strategies Corp 1.67 -0.04 -2.34% 599.90k Emblem Corp 1.48 -0.02 -1.33% 299.41k The Supreme Cannabis Company Inc. 1.65 -0.01 -0.60% 833.14k

With Thursday’s Cannabis Act vote (Bill C-45) rapidly approaching, there’s little reason to believe the rally can’t continue for another session on two. The key question is whether the market will react to a successful vote by selling the news.

After all, the official passage of Bill C-45 will likely trigger a flurry of sector activity, now that royal assent is practically assured. Unlike the sell-the-news event which engulfed the cannabis sector following Justin Trudeau’s tables legislation in April 2017, there’s a light at the end of the tunnel this time around.

Whether history repeat itself, rhyme, or throw everyone for a loop remains to be seen. But on this day, investors couldn’t get enough of the sector, lead by Canopy Growth’s morning leadership.

Canopy Growth CEO Bruce Linton talks about the company’s road map going forward