What a Finish — Wait ‘Til You See Q2!

Hey There Income Hunters,


Technology picked up the pace yesterday and finished in the green by a nose for the quarter …



Now, thanks to the great work in the US to distribute the vaccine, we will surpass the goal of 100 million shots in the first 100 days of the Biden presidency …


Confidence in consumers is surging as Q2 gets underway and we see growth accelerate.


And with excess savings — more than $2.3 trillion in accounts nationally — there is a ton of pent-up demand to spend as the economy reopens … 


I bought a couple of new names yesterday in areas where I think there is the most potential for growth, including one I find especially interesting.



High Hopes


Cannabis offers excellent potential for growth, no pun intended.


New York has legalized it, while Virginia, Pennsylvania and New Mexico are reportedly making progress, as well.


Sales in the US are expected to rise to $21 billion in 2021 and expand at a rate of 12% a year, according to CNN … 


With most companies trading over-the-counter and no options listing, I think the AdvisorShares Pure US Cannabis ETF (MSOS) cannabis ETF is the most efficient way to gain exposure because it does have liquide options … 


The top-5 holdings are the big names that are either multi-state operators or global operators … 


MSOS holdings include:



The sector has gone through a six-week correction after more than 100% return.


This is a great time to get in because I think Q2 will bring a resumption of money flowing into growth companies …



My MSOS strategy yesterday was to buy a vertical call spread and, on a break above $44, to buy an outright call to trade around …


At-the-money volatility is about 58%, so I see this as a good name to trade aggressively short-term.



Bring it Home


I am bullish heading into Q2, and I think stocks will continue making new highs and S&P could see 4,300.


The key, is always, is what happens to interest rates … 


If the Fed makes the mistake of letting them go too high — meaning above 2%, in my opinion — we could be in for a 10% correction.


I do not believe Fed chair Jerome “J-Pow” Powell and Treasury Secretary Janet Yellen will make that mistake at this point …


However I’m closely watching that number and looking for clues that tell me otherwise …


All the best to all #IncomeHunters in the forthcoming Best Quarter Ever!


Live and Trade With Passion My Friends,



Griff

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.