MSOS Drifts Lower as the Market Shrugs Off Drug Czar News

 

Today was another one of those frustrating, low energy days for MSOS. Price action was dull, volume was uninspiring, and to make matters worse the ETF drifted slightly lower. That’s annoying for me personally because I’ve been stalking long setups for several days now and nothing is triggering. No clean breakouts, no decisive reversals just a lot of waiting. From my perspective, the line in the sand remains very clear: I want to see MSOS get back above $5. Until that happens, I’m not convinced we’ve truly turned the corner and are ready for a sustained move higher.

What made today more interesting or at least confusing was the news that hit around 2:00 PM. The Senate officially confirmed President Donald Trump’s pick for White House drug czar, Sara Carter Bailey, who will serve as director of the Office of National Drug Control Policy. Given her publicly stated stance on cannabis, I honestly expected the market to react more positively. Instead, we got a brief blip higher that quickly faded, followed by selling into the close.

That reaction tells me a lot. On paper, this should have been supportive news for the sector. Carter has been fairly pragmatic and open-minded when it comes to cannabis policy. She has explicitly supported medical cannabis, stated that she doesn’t have a “problem” with legalization even if she doesn’t personally advocate for it, and has described cannabis reform as a bipartisan issue. She’s also acknowledged that the administration kept all options on the table regarding rescheduling and didn’t push back when questioned by Senator Cory Booker about expanded research and reform. That’s about as reasonable a stance as you can hope for from someone in that role.

Yet the market shrugged it off. To me, that suggests either the news was already priced in, or more likely, that traders are still skeptical and want to see actual price confirmation, not just headlines. This is why I always come back to relative strength and price behavior. If the sector were truly under accumulation, we’d see it respond better to news like this.

For now, it’s still a waiting game. I remain interested, I remain constructive longer-term, but until MSOS proves itself by reclaiming key levels, patience is the only trade. Let’s see what tomorrow brings.

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