Observant investors will notice a pattern among the hyped sectors. They rise quickly and furiously, then eventually lose steam. The electric vehicle implosion continues to play out. On Monday, Fisker (FSR) topped the stock markets by trading at the top #1 volume of 288,531,089 shares.
After Fisker announced a small, investment commitment of up to 4150 million, Tesla (TSLA) shares rose by 6.25%. Expect TSLA stock to continue its bounce from last week’s ~ $160 low. In the coming quarters, Lucid Group (LCID) and Rivian (RIVN) are likely to report slowing production and operating margin pressure. This would widen Tesla’s lead in the EV sector.
Canoo (GOEV) popped by nearly 50% yesterday after the U.S. Department of Commerce approved its Oklahoma City manufacturing facility as a foreign trade zone. Short-sellers hold a decisive 13.59% short float against GOEV stock.
Speculation returned in the cannabis sector. Canopy Growth (CGC), a Canadian firm, popped by 20.4% yesterday. Investors should ignore the temporary pop. Markets are guessing that the Drug Enforcement Administration (DEA) would reschedule cannabis. The market is constantly building on the hope of rescheduling and federal legalization, only to realize disappointment.
Village Farms (VFF), Acreage (ACRHF), and Cresco Labs (CRLBF) are among the cannabis stocks rising. Beware of these stocks dipping quickly after the buying frenzy dries up.
