Energy poised to assume Canadian market leadership from pot stocks

In my Valentine's Day interview with Jim Goddard, I make the case that Energy stocks led by Cenovus (CVE) are likely going to start pulling their weight in the Canadian market. That would be a welcome development for Canadian investors because our indicators are also suggesting that the recent marijuana stock rally is in the final stages.

Cenovus CEO Alex Pourbaix dancing to the oil patch beat

Based on American insider activity, I also make an out-of-consensus call on bond yields.

We kick off the broadcast talking about the Canadian oil patch. I highlight how our indicators are suggesting that Canadian oil & gas stocks may have finally turned the corner. As a result, we expect the Energy sector to help boost Canadian market momentum. I also touch on the themes from yesterday's post Cenovus Energy starts to run circles around oil patch rivals.

In the second segment I review the implications of higher than expected January US consumer prices combined with rising jobless claims. If we get a trend of higher inflation and weaker labour markets, I explain how the old school sectors of Energy, Basic Materials and even Industrials could assume US market leadership. I also highlight our non-consensus view from the January 30th US Market INK Report that American insiders are signalling higher bond yields ahead.

In the final segment, I suggest that while pot stocks may still move a bit higher, our indicators signal that we are likely near the end of the current rally. This draws on the themes discussed earlier in the week in the post Will big US pharma swamp big Canadian pot growers?

You can click here to listen to the interview.