Stocks Cruising Up the Charts Through February

Pot stocks were popular this week

Deputy Editor
Feb 12, 2021 at 2:28 PM
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This week kicked off with a bang, and virtually no sign that the extreme market volatility of last week had ever occurred. In fact, the major indexes closed Monday's session with records, as newly appointed Treasury Secretary Janet Yellen pleaded for more Covid-19 stimulus. However, by Tuesday, some investors began to take profits from the rally, resulting in a mixed session. That carried over to the next afternoon, and Wednesday saw volatile trading as a handful of stocks regained traction, and Federal Reserve Chairman Jerome Powell commented on the challenges the labor market will continue to face.

On Thursday, worse-than-expected weekly jobless claims data put further pressure on the major indexes, and the blue-chip went on to close below breakeven after earlier rising to an intraday high. To close out the week, Wall Street was aiming to brush off a worse-than-expected January jobs report on Friday, but by midday were taking a breather. Heading into the long weekend, the major indexes were on track for a slight pullback, though optimistic vaccine data sought to keep losses in check.

Pot Stocks Take Center Stage

We noted at one point that pot stocks could be the real winner of the new election cycle, and things are looking good for the growing industry. First off, Aphria (APHA) stock surged to a new all-time high thanks to a deal struck by pending merger partner Tilray (TLRY). Canopy Growth (CGC) reported stellar fiscal third-quarter results, boosted by an increased demand for weed products with stay-at-home orders still in effect. Elsewhere, Cronos (CRON) stock hit a record high, and a bull signal flashed on the charts that showed the equity could soar even higher. It wasn't all sunshine, however, as a bear note hit Aurora Cannabis (ACB) stock hard, in the wake of a disappointing earnings report.

Earnings Show No Sign of Slowing Down

Another round of big names reported earnings this week. Hasbro (HAS) reported a better-than-expected fourth quarter, thanks to a boost in board game sales. Take-Two (TTWO) was another game company that reported an impressive quarter, and the company expects to release 93 new games over the next five years. Shifting gears, LYFT (LYFT) reported losses, though they were smaller-than-expected as the pandemic rages on. Rounding things out, two major beverage companies turned in their reports. Specifically, Coca-Cola (KO) and PepsiCo (PEP) chimed in with earnings, though their responses to the reports ended their stocks on opposite ends of investor senitment.

Holiday-Shortened Week Full of Economic Data, Earnings

Despite a holiday-shortened week, there's still ample economic data for investors to digest, as well as a slew of earnings reports from companies like Applied Materials (AMAT), CVS Health (CVS), and Walmart (WMT). In the meantime, Schaeffer's Senior Quantitative Analyst Rocky White highlights two technical indicators that every bull should know. Also be sure to check out our Monday Morning Outlook, where Schaeffer's Senior V.P. of Research Todd Salamone helps bullish traders chase the market.


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