TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

The cannabis sector got off to a hot start this year as many investors look to capitalize on the burgeoning Canadian cannabis industry prior to the legalization of recreational marijuana, which is expected to occur before July 1st.

Although this opportunity is very exciting and represents a once-in-a-lifetime event, trading volume is declining and this is something that investors need to monitor. This trend is nothing new and it is something that we have watched happen every year since we starting covering the cannabis sector in January 2014.

We are monitoring this trend and expect this year to be different as Canada plans to open a legal recreational marijuana market. Once the government provides an update on this plan, we expect to see this trend reverse and volume strengthen.

Today, we have highlighted five leading Canadian licensed marijuana producers that have recorded a significant drop off in trading volume and that cannabis investors should be watching.

Canopy Growth Continues to Deliver

Over the last month, Canopy Growth (WEED.TO) (TWMJF) has rallied approx. 15% and the marijuana producer continues to execute on all cylinders. During this time, Canopy’s average trading volume dropped approx. 15% when compared to its average over the last quarter and we are monitoring this trend. Momentum has been trending lower and we remain bullish at current levels.

Canopy Growth is well positioned to capitalize on Canada’s recreational marijuana market and has secured supply agreements with several provinces. The marijuana producer is levered to several emerging medical marijuana markets (Australia, Germany, Chile, Denmark, and more) and has the largest market share in Canada. Last year, Constellation Brands (STZ) made a $245 million investment in Canopy Growth an investors need to keep an eye on this cannabis stock.