The stock market closed above its 50-day moving average last week to break out of the range it had been stuck in for a month now. I don’t really think it will do much one way or the other going into next week’s Fed meeting.
But some individual stocks will move and look for a new small cap stock tomorrow. There is no other sector though that has been more loved by more people this year than the dope sector. More people own ACB than any other single stock who have Robinhood brokerage accounts.
Some of the most important dope stocks do look oversold and do look like they will now finally rally, while a few like TLRY still look bad.
But right now CGC is the best looking one for a rally.
Notice how the daily stochastics on CGC crossed back above 20 to give an oversold buy signal. It looks like it can rally up into the $32.50-$39.20 range, the area of its 50-day and 150-day moving averages.
You may have noticed that REIT’s stocks have been soaring as people are looking for dividend paying stocks as interest rates go lower and lower. And they want defensive stocks too immune to the risks of a slowing economy.
Here is one stock that owns a basket of the nation’s biggest tobacco brands and also has a giant REIT division owning properties in New York City and across the country.
If you guessed Vector Group – then you guessed right.
Here is the chart.
VGR pays a dividend of 13.79%. I wonder if VGR will go up more and outperform CGC even if CGC does rally here?
What do you think?
Will tobacco stocks and REITs outperform dope stocks in 2020 even with the dope stocks as oversold as they are now?