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Buzz on the Bullboards: Sector rotation?


Stockhouse Editorial
0 Comments| May 10, 2018

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Do prices create (market) “sentiment”? Or, does this sentiment generate prices? Investors will line up on both sides of that causal debate. For those investors who think that prices create sentiment, they might be especially interested in activity on the Stockhouse Bullboards over the past week.

The last time that “Buzz” looked at our cannabis Bullboard leaders was on the latest “420” anniversary. Since that time, cannabis Bullboard activity has dropped off somewhat. Industry heavyweight, Canopy Growth Corp (TSX: WEED, OTCQB: TWMJF, Forum) has had almost a constant presence among the cannabis Bullboard leaders. This week it fell out of the Top-6 completely. Bucking this trend is Namaste Technologies Inc. (TSX: V.N, OTCQB: NXTTF, Forum) – another Stockhouse favorite.

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Namaste’s Bullboard reads are up dramatically over the past week because the Company has been busy. In just the past eight days, Namaste has announced four new cannabis deals.

While cannabis is (generally) down, energy is up. Energy prices (and energy company share prices) have been surging over the past couple of weeks. More recently crude prices have spiked due to the latest erratic behavior from U.S. President Donald Trump: abruptly (and unilaterally) repudiating a nuclear deal that the U.S. had previously negotiated with Iran.

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Prices are up – and sentiment is following. Reads on Stockhouse’s energy Bullboards have started to surge. Topping the list over the past week are Baytex Energy Corp (TSX: BTE, NYSE: BTE, Forum), Crescent Point Energy Corp. (TSX: CPG, NYSE: CPG, Forum), and AltaGas Ltd. (TSX: ALA, OTCQX: ATGFF, Forum).

Of note, all three are large-cap energy companies. When a sector turns higher, it’s typically the prices of large-caps that lead the way. Stockhouse, on the other hand, is primarily a small-cap investor site. The bottom-line? For Stockhouse energy investors, now might be the right time to start positioning yourselves in your favorite energy small-caps.

Elsewhere on Stockhouse, mining companies have been coping with sagging metals prices in recent days. Share prices have sagged – and so has sentiment with our mining Bullboard leaders. Expect this to rebound at least somewhat, with a new metals conference about to open in Vancouver.

Interest in blockchain companies (and the blockchain Bullboard leaders) has bounced back this week, yet overall interest in tech stocks continues to be soft. The healthcare Bullboards are up slightly this week, but overall reads are still relatively light.

With our technical problem fixed, we’re happy to (belatedly) bring you the results of our latest Investor Pulse Poll. We asked you: has recent turbulence in Canada’s urban housing markets had an impact on your present investing behavior?

…and this is what you told us.

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While some investors have been a little rattled by shaky performances in Canada’s urban housing markets, the majority remain unfazed. This leads us to our new poll. This week’s poll:

What is your primary investing goal?

  1. Getting rich
  2. Preparing for retirement
  3. Hedge against inflation
  4. Funding children’s education
  5. All of the above

With markets more turbulent since the start of 2018 (and volatility back), we’re now seeing more dramatic swings in sector valuations. Or, in the words of one of Stockhouse’s resident market sages,

Some sectors are buzzing and well, others are feeling the sting.

Stay current and stay nimble.


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