Happy Wednesday Zingernation! Cannabis might not be the first substance you associate with Wall Street. But the $MSOS, an ETF that tracks stocks in the sector, is up more than 50% on the year. That might be enough to get even Warren Buffett to light one up. But here’s why you never smoke weed with another nonagenarian. RIP Toby 💔 

Before we dive in, check out the tool that could help refine your trading skills.

And, did someone forward you this email? Click here to subscribe to this Benzinga newsletter and more.

MARKET SNAPSHOT

Yesterday: Was just so-so. The S&P 500 and Dow closed slightly in the green, while the $QQQs inched lower amid weakness in high-flying names like NVIDIA and Meta Platforms.

On Our Radar: The U.S. Trade Deficit came out at 8:30 am ET, then more Fed Speak! We will also hear from Disney, PayPal and more after the close.

TOP STORY

Josh Brown Sold Some NVIDIA Stock Today

Briefly: NVIDIA mania is real — so much so that one analyst thinks people have “lost their minds.”

What Happened: Ritholtz Wealth Management’s Josh Brown announced that he trimmed his NVIDIA position for just the second time since 2017.

Back Up: NVIDIA shares skyrocketed more than 230% in 2023 and have yet to show signs of slowing this year.

But Then: After hitting new all-time highs in early trading yesterday, Brown decided to lock in some profits.

Quoted: “After doubling last year, more than doubling, this stock went up 40% year-to-date and I looked at that upgrade yesterday and there was absolutely nothing new,” Brown said.

Why It Matters: People have become so bullish on NVIDIA that they have run out of new good things to say, Brown said. Instead, analysts are raising price targets to keep up with the stock. It’s become almost “breathless,” he added.

Read On: Check out the full story here.

PRESENTED BY CBOE

FIVE ZINGERS

Couple Loose Screws: And no I’m not talking about myself. Here’s what investigators found regarding the door that blew off a Boeing jet.

Sell The News? We talked about how cannabis stocks have been ripping in the intro. Here’s why one insider thinks a major news catalyst is on the way.

Yummy Gains: $YUM, the owner of KFC and Taco Bell, reported strong earnings citing strength in foreign markets like China.

Who’s Surprised? Nancy Pelosi and her husband just made a nice profit on an NVIDIA transaction. Here are the details of the million-dollar trade.

Buy The Dip, Sell The Rip: China stocks have been out of favor and not participating in the broad-market rally. Here’s why that could change soon.

ONE FOR THE ROAD

Still Worried About A Recession? Expert Says You Should Be Concerned About This Economic Risk Instead

Briefly: Recession fears? C’mon. That’s so 2023.

So Basically: We’re in 2024 now, we have Apple space goggles, a new Taylor album on the way and more importantly, all-time highs in the market. Which is why one analyst is worried about the economy getting too hot, not cooling off.

So Then: Callum Thomas, the founder of Top Down Charts, argues that if economic data remains strong, the Fed could be forced to raise rates again.

So What? The market has already priced in multiple rate cuts this year. If the Fed does the opposite and raises rates, stocks could take a big hit. Thomas says that commodities would perform well as a hedge in this scenario.

What Next: Thomas says that if we see the PMI start to increase, it could mean inflation is picking back up too. Read more here.

PRESENTED BY CBOE