Nasdaq, Cannabis Breakout

by Nick Hodge

I sold some silver stocks this week.

The dollar has perked up a bit recently, now at its highest level in two months.

We’ve had stocks and commodities ripping higher over that time. The cycle has seen most everything except precious metals trade inversely to the dollar.

But just like the two days of sell-off we had last week… and the mania over WallStreetBets… I think the rise in the dollar is temporary, and not a change or reversal in the cycle.

Bitcoin and ethereum are still moving higher. The Nasdaq hit a new record high today.

I think what you’re seeing are some tremors from the brief spike in volatility around a small group of stocks over the past several trading days.  

You’ve got the Fed still committed to inflating asset prices. Now Janet Yellen is back on the case as well as the new Treasury Secretary.

Congress is getting closer to a new round of stimulus.

Virus cases are beginning to slow as the days get longer and as more people get vaccinated.A major milestone was hit this week as more Americans have now received the first dose of the vaccine than have been infected.

Earnings for Q4 2020 are off to a good start, and the S&P 500 companies in total could report year-over-year growth for the first time since Q4 2019.

And analysts are raising their estimates for Q1 2020 earnings at their fastest pace since Q1 2018. According to Factset, “In a typical quarter, analysts usually reduce earnings estimates during the first month of the quarter.”

The sector getting the highest increase in earnings per share? Energy, with a whopping 59% increase in EPS guidance — nearly six times higher than the 10% increase for the Financial sector.

Guess which is the only of the S&P sectors that we’re long in Foundational Profits right now?

Everything remains awesome.

Including cannabis, with multi-state operators breaking out to new highs today. We are long several of those as well.

So the Nasdaq hit new highs today. Energy stocks continue to inflate. And cannabis stocks are hitting new highs.

Those are three of the top four sectors in our “Top Sectors for 2021” report.

Can the cycle change?

Yep, any day.

But not today.

Call it like you see it, 

Nick Hodge,
Publisher, Daily Profit Cycle
 

Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Hodge Family Office, Family Office Advantage, and Foundational Profits. He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.

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