We’re watching a once-in-a-generation catalyst light up the market right now.
And traders who sleep on this one could regret it for years.
Momentum is building fast, the early volume is undeniable, and some traders are already positioning for a historic move.
The last time we saw this kind of buzz, small caps in the space easily ran +100%. But this time, the catalyst isn’t an earnings report or a speculative rumor. It’s something much bigger.
On December 18, President Trump signed an executive order to reclassify marijuana from Schedule I to Schedule III, marking the first major U.S. federal shift on cannabis policy in more than half a century.
The move could ease banking restrictions, cut tax burdens, and unleash billions in institutional capital into one of the most heavily regulated markets on Earth.
The timeline’s still unclear, and that’s exactly why the opportunity is so big.
With an undefined schedule, this early momentum in the sector is still somewhat speculative. Once the reclassification is solidified, that’s when things get real.
Keep a close eye on the watchlist I’m about to share. These setups are full of explosive potential. The charts are strong, the catalyst is real, and the volatility is just heating up.
This is how historic runs begin, right before everyone else realizes what’s going on.
Sector Momentum
Sometimes we see a catalyst in the market that’s strong enough to lift an entire sector.
We’ve already seen multiple moves like this in 2025.
When crypto stocks exploded earlier this year, we watched tiny tickers run 100%+ overnight just because they mentioned “blockchain” in a press release.
It didn’t matter if the company mined coins or made coffee — the market rewarded any momentum with a vaguely crypto-related catalyst.
We also saw a lot of momentum from precious metals and rare earths, fueled by global trade tensions and China’s export restrictions.
The same general setup: Early volume, hot headlines, and predictable breakouts, led to vertical runs much higher than 2,100% (CRML).
And most recently, AI energy stocks took their turn. Companies like Soluna and Oklo ripped triple digits as traders connected the dots between data centers, power grids, and surging AI demand.
It was the perfect storm. A blend of technology, necessity, and speculation.
Now the same pattern is repeating again. This time, in an industry that’s been waiting decades for its breakout moment: Weed.
We’re seeing the first signs of institutional momentum returning to a long-dormant sector. One that could completely reshape if the coming classification rumor becomes reality.
Every time a new sector catches fire, it’s the early traders who capitalize on the chaos.
That’s exactly where we are right now.
Stay sharp. The watchlist I’m about to share highlights tickers leading this momentum before the rest of the market has had a chance to catch on.
Weed Stock Watchlist
There are three stocks that you need to keep an eye on …
Tilray Brands Inc. (TLRY) is emerging as a front-runner in the cannabis rally that was ignited by Trump’s planned reclassification.
(Note: I actually recommended Tilray in Weekend Trader for a quick 4% profit in just over 10 minutes!)
With exposure across North America and Europe, Tilray’s diversified footprint in cannabis, beverages, and wellness makes it a prime beneficiary of looser federal restrictions.
It spiked 70% after Trump’s news was announced. There’s more than enough juice left in the tank for another surge.
TLRY chart multi-day, 1-minute candles.
Canopy Growth Corporation (CGC) is one of the purest momentum plays tied to Trump’s marijuana reclassification plan.
As one of the original cannabis giants with deep distribution across Canada, Germany, and Australia, CGC stands to gain massively from renewed U.S. market access and reduced federal barriers.
The price already spiked 100%.
CGC chart multi-day, 1-minute candles.
And finally, AdvisorShares Pure U.S. Cannabis ETF (MSOS) is the true read on real money entering the cannabis trade.
It’s an ETF that targets U.S.-based operators, the ones positioned to benefit most from reduced tax pressure and potential banking reform.
This is a sector gauge. When policy shifts become reality, MSOS could capture the bulk of institutional inflows driving this historic move.
The price already spiked 80%.
MSOS chart multi-day, 1-minute candles.
(*Note: Past performance does not indicate future results.)
Keep an eye on the news and get ready for more momentum from this sector. I know I am.
If you’re planning on buying pot stocks, let me know at [email protected]. I’ll follow up with more about this hot sector in 2026.
Cheers,
Tim SykesEditor, Tim Sykes Daily



















