The indices continue to trend higher in a relentless fashion. FAANG stocks have a slew of target increases, Tesla (TSLA) is hitting a new all-time high, and pockets of very strong speculative action continue.
On Friday I mentioned that I was looking for the cannabis sector to attract interest this week and that seems to be the case. My Stock of the Week is a Florida-based medical dispensary, Trulieve Cannabis (TCNNF) and it is building on Friday's breakout very nicely. A couple of other plays I'm holding are Green Thumb Industries (GTBIF) Curaleaf Holdings (CURLF) , and Power Reit (PW) . I think the group is going to run for a while and I'll be looking for more entries.
There is also some follow-through in precious metals but the speculative trading is not quite as robust overall. The number of stocks up more than 10% is smaller today and breadth is good, but not great, at 4250 gainers to 2900 decliners. There are 350 stocks at new 12-month highs which isn't as high as you'd see if the indices were all at new highs.
My focus remains on individual stock picking. The market timers are being crushed again. Ironically the big jump in Covid-19 cases is creating a giant wall of worry for the market to climb. When the market shrugs off the worries, those with cash or that are short have no choice but to put more cash to work. That pushes the market higher and causes more anxiety about missing out.
This action is not going to last forever but as traders its our job to take advantage of it while we can.