It looks like new money is starting to come into the sector
And what do they always choose at first glance?
The name stocks, also known as bellwethers
In premania, bellwethers always move first, but they never move the farthest
Every stock in the sector has a certain proportion of daytraders who own it, and when the bellwethers start to move, these daytraders will often sell a non-bellwether for a bellwether
This creates dips in the non-bellwethers — which always vastly outperform the bellwethers during a cannabis sector mania — creating a final buying opportunity in the non-bellwethers for those who understand this phenomenon
This is all standard stuff for the beginning of premania
Here is a post I wrote regarding this phenomenon concerning the difference between bellwethers and Salami stocks during premania:
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