The ETF is up more than 5% this month and is close to reclaiming its 200-day moving average, which could brighten MJ’s technical outlook.

Canada-based Canopy Growth Corp. (NYSE: CGC), one of the largest Canadian marijuana stocks, started trading on the New York Stock Exchange last week. Canopy is MJ’s fourth-largest holding. There are now two pure-play Canadian marijuana firms trading on major U.S. exchanges, perhaps signaling the negative stigmas surrounding these investments in the U.S. is ebbing. MJ has over 4379 million in assets under management, indicating there is some appetite for marijuana-related investments.

“The potential for broad investment in the space, including through ETFs, could have a positive impact on all the related stocks, as was the case during Q4 2017; however, short sellers have shown no reluctance to increase positions into a rising tape. With short interest and prices on the rise, something will have to give eventually, though as Tesla bulls and bears can attest, that may take some time,” according to Markit.

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