Faltering FAANG...

Facebook, Amazon, Apple, Netflix and Alphabet (Google) make up over 10% of the S&P 500. When a couple of these names begin to stumble it's reflected in the market as a whole. 

Facebook is down 25% from it's all time highs followed by Netflx 18% and Alphabet 9%. Apple and Amazon also showed some weakness helping the S&P 500 and NASDAQ to close lower on the week.

Emerging markets have been in the headlines lately and are now considered to be in bear market territory having corrected 20% from highs seen in January. 

US and Canadian markets are trading only fractionally below all time highs but it's important to keep things in perspective. Markets will always correct, even if lately it seems to happen with less regularity. 

This is what a correction of 20% would look like in the S&P 500. How much "heat" can you take with your current holdings? Be sure you understand the stocks you own and why. Adhere to your stops.

MegaTrends

Below are five of the stronger trending stocks on my CM50 (Canadian MegaTrends) & UM50 (US MegaTrends) lists. 

Pot stocks continue to show solid momentum and are still dominating the headlines in both Canada and the US. I find it interesting to watch the stigma attached to consuming cannabis continue to fade, especially when a billionaire does it live on a pod cast.  

In Canada some of the smaller capitalized cannabis stocks are gathering momentum and many are trading near all time highs.

In the US, momentum continues in familiar names on my UM50 list. There's no shortage of momentum stocks for those who would rather buy strength instead of searching for "value".   

Remember that chasing stocks higher is not recommended and even the strongest trending stocks can experience significant drawdowns. 

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Have a great day and thanks for reading!

Greg Rieben