I posted a live video session I did yesterday in which I looked at the five leading cannabis stocks. I also took a look at how google search data shows us that investor behavior is evolving more and more into trying to chase what is hot at the moment. It is in part a fact that more people are trading on their phones with apps with very limited information beyond pure price action.

You can watch this video by going here:

Now yesterday the market went up more with help from news by Trump that he may just let the March 2 tariff deadline he has set with China slide.

The sad thing for Apple holders though is while the Nadaq went up 1.46% yesterday AAPL stock only went up 0.85% showing us that it is still going to be a major stock market laggard. This is one reason why many are getting into dope stocks now and while in time many will get into gold stocks in my view.

Big cap fad tech stocks that broke down last year are still lagging. You see this in the DOW where the big leader now is not AAPL or MSFT, but BA.

It is now a key stock to watch.

I actually bought some defense stocks right before the September BA top I circled on the chart. I did this with the idea that many of them were breaking out at the time and IF the stock market were to go up into the end of the year I’d be in the leading stocks.

I had tight stops on them though and when the stock market peaked out I sold days later. If I had held I would have gotten smashed as most defense stocks have not come back like BA. You have to be nimble in markets like this.

We have to be just as careful now about buying what is hot, because this market rally will come to an end at some point. It’s not happening today, and probably won’t happen this month, but it will happen at some point.

Here is another stock that is interesting now.

TNDM is a health care stock that just broke out this week and is likely to go higher now. It didn’t just bounce in January after having a big drop, but came out of a nice consolidation pattern.

Notice it had strong relative strength last year by holding up well while the stock market fell.

It is stocks that hold up during declines that tend to lead on rallies.

Go to my video on cannabis stocks and more by going here:

http://wallstreetwindow.com/2019/02/five-top-cannabis-stocks-stock-market-sector-update-for-february-mike-swanson-02-12-2019/

-Mike