We’re well into spring, and I believe coronavirus stocks are still the hottest stocks in the market.
As the epidemic turned into a global pandemic, the effect on the stock market expanded. And as the global response shifts, different companies and sectors are in play.
The most important thing is to remember COVID-19 is the common denominator. It’s the underlying catalyst behind much of the recent stock market volatility. It’s led to some wild market moves…
Like an 11,000 point drop from the February 12 high. Or a 5,000 point bounce off the March 23 lows. It’s stock market madness.
Then there’s the oil crash. Oil price wars and severely reduced demand due to coronavirus lockdowns led to…
Massive oversupply and a huge price drop. And there’s only a limited amount of storage space for crude oil.
It’s like the perfect storm. Oversupply + very little demand + no storage = panic.
On April 20, West Texas Intermediate oil contracts traded in negative territory … for the first time in history. (Read more about the oil crash here.)
All this volatility is wild — and it keeps coming back to the coronavirus.
Table of Contents
- 1 The Hottest ‘Sector’ In Years
- 2 Coronavirus Is a Hot Sector Unto Itself
- 3 What’s Old Is New Again
- 4 The Road Is Long
- 5 What You Need to Know About Coronavirus Stocks
- 6 The Best Coronavirus Stocks Right Now
- 6.1 CytoDyn Inc (OTCQB: CYDY)
- 6.2 Expect the Worst and You’ll Never Be Disappointed
- 6.3 Decision Diagnostics Corp (OTCPK: DECN)
- 6.4 Opko Health (NASDAQ: OPK)
- 6.5 Pluristem Therapeutics Inc. (NASDAQ: PSTI)
- 6.6 Vaxart Inc. (NASDAQ: VXRT)
- 6.7 GenMark Diagnostics, Inc. (NASDAQ: GNMK)
- 6.8 Inovio Pharmaceuticals, Inc. (NASDAQ: INO)
- 6.9 Co-Diagnostics Inc. (NASDAQ: CODX)
- 7 How to Trade Coronavirus Stocks
- 8 Choose Your Battles Well
- 9 Prepare for Battle
- 10 With or Without You
The Hottest ‘Sector’ In Years
What started as a hot sector with vaccine, mask, and test plays spread to other sectors. On March 13, President Trump declared a national emergency. Food delivery and work-from-home solution stocks spiked.
In the past few weeks, it’s been hand sanitizer and ventilator plays. And … secondary spikes for vaccine stocks, testing stocks, and mask companies.
In this newly updated post, I’ll share with you what I think are the best coronavirus stocks right now. Plus, some tips on trading them. (Or learning from all these hot plays if you’re new.)
My students are crushing it. Even some newbies report doing well because there are so many great setups. Others are using the shelter-in-place lifestyle to study, study, study.
(HINT: Come back to this post often. I’ll update daily with the best coronavirus stocks right now.)
For those of you who’ve been asking what it’s like to trade a hot sector…
There are SO many coronavirus plays. But what exactly falls under the banner of ‘coronavirus plays’? The pandemic is affecting many, if not all, market sectors.
What’s happened over the course of the past six weeks is crazy. There’s almost a separate and unique coronavirus sector. Any company that mentions the coronavirus can spike. That includes companies far outside the traditional biotech or pharma sector. Companies you’d never consider going into the pandemic.
On March 30, Virgin Galactic (NYSE: SPCE) announced its engineers were designing a low-cost ventilator. Then on April 9, it announced a partnership with NASA to build oxygen hoods for COVID-19 patients.
And it’s not only direct coronavirus solutions hitting press releases. It seems like everyone wants in on the coronavirus news cycle….
Audible is letting kids listen for free while lockdown homeschool is in session. Rum maker Bacardi is now in the hand sanitizer business. Chinese e-commerce giant Alibaba donated 500,000 test kits to the U.S.
Everyone wants to be seen as doing something to help. And they’re letting everyone know about it. As they say, no press is bad press…
Now You Know What A Hot Sector Looks Like
Weeks into the pandemic I’m still getting hundreds of emails and DMs from people saying…
“So THIS is what a hot sector looks like…”
For them, the past two months have been a wake-up call.
It’s kinda crazy. When the market tanked in March, traders and investors all over the world lost in a big way. Meanwhile, my students crushed it.
Thing is, many newbies had never really seen a hot market. Yes, the overall market was hot. But until these coronavirus stocks started spiking, a lot of you hadn’t seen a hot sector.
Markets like this weed out the fakes and frauds. It exposes the newbies leading newbies to the cliff’s edge.
Every day I get messages from people saying, “Wow, I used to think you were full of crap.” But now they see my top students taking advantage of this crazy market. And they finally want to know what to do.
My students are doing what they always do. More on that later, but keep in mind that it’s tough to keep up in a bull market. Why? When a bull market is surging, my students’ trades don’t look like anything special.
But when you get a world crisis, when you get a hot sector — that’s when we outperform.
For me, I’m just trying to keep up with all the plays. It’s been an amazing two months for me and my students.
But here’s the thing…
What’s Old Is New Again
We’ve seen this before. If you’re brand new, then you won’t have seen it before — unless you’ve studied enough stock market history.
Before I go further — props to so many students for nailing it. I’ll share some of your Profit.ly chat comments below.
Unfortunately, I can’t share dollar amounts or percent gains in this post. My lawyer won’t let me. Why? Because some bureaucrat at some three-letter government agency is watching.
So for those of you nailing it … I see you. I know who you are. Keep crushing it!
Don’t Feel Bad If You Miss a Trade
If you haven’t nailed it … don’t feel bad. Use this market to learn and do your best. Don’t feel bad if you miss a trade or a play. If a play happens without you — it’s OK. If you make a mistake — it’s OK.
At the same time, we’ve now had nearly two months of coronavirus-based market volatility. So you’ve had time to see a lot of big wins by me and my students. Since March 1, I’ve made over $67,000 in profits.** Tim Grittani had a career-best month in March with reported profits of over $765,000.**
[**These results are not typical. Grittani and I have exceptional knowledge and skills developed over time with dedication. Most traders lose money. Trading is risky. Do your due diligence and never risk more than you can afford.]
Remember, how you trade is more important than whether you win or lose. Don’t let FOMO be the reason you get into a high-risk trade. Instead, work on the process. I trade with a small account so students can understand my process.
Especially when you realize…
The Road Is Long
You’ll have good trades and bad trades. Keep it all in perspective because the road is long. Remember, even Grittani didn’t make any money in his first nine months. And his worst loss came after he was already a millionaire.
Trading coronavirus is no different than trading Ebola back in 2014. We’ve seen other hot sectors in the past like cryptocurrency, weed stocks, and China stocks. Or shipping stocks, biotechs, and nanotech.
Twenty years ago it was Y2K stocks.
Whether you’ve seen it or not … you should be taking advantage of it. Not ready to trade? Buckle down and study.
Continue Your Journey One Step At a Time
The first step is witnessing this price action. Like I said, a lot of people are surprised. “Tim, I’ve never seen anything like this!”
But it’s the exact same patterns. You just have to wait for these hot-sector markets. And you won’t necessarily get it the first time. That’s OK. If you’re not ready, watch and learn like Jack Kellogg (Jackaroo on Profit.ly) did. Here’s what Jack had to say about his recent success…
“It’s no secret the market is extremely hot right now, but this month was a long time in the making. I’ve failed to capitalize on nearly every hot market I encountered — but they prepared me for this. The bitcoin run in 2017 and weed run in 2018 were huge lessons…”
Whether you trade or not — these plays will move. And whether you’re long or short biased, these plays will move.
It’s a waste if you don’t profit from it…
But when I say ‘profit’ I don’t necessarily mean money. It depends where you are in your journey. If you’re new, it’s about building your knowledge account. Study my DVDs. The money will take care of itself later, once you’ve put in the time.
Before I get to the best plays, let me go back in time…
I’ve written about Alpha Pro Tech (NYSE: APT) a few times recently. That’s because it’s a great example of the similarities between the Ebola and coronavirus spikes. But it also highlights the differences in the overall market.
Back in 2014 during the Ebola outbreak, APT went from roughly $3 to $12. Check it out…
During the COVID-19 outbreak, it ran from roughly $3 to $40. The recent spike was much bigger for two reasons…
First, we’ve been in this amazing bull market. Second, short sellers are getting crushed by short squeezes. More about that later.
The main thing to understand is…
… this phenomenon happens again and again with penny stocks. And it’s beautiful. (Check out my free penny stock guide here.)
OK, let’s do this…
Reminder: I’ll be updating this list regularly. So it’s a good idea to bookmark this post and come back. Do it now…
The Market Is Volatile
This is a highly volatile market. Again, the Dow dropped 11,000 points off its highs and then bounced 5,000 points. Oil crashed in a conflict of supply vs. demand vs. storage. Unemployment claims have risen to 26.5 million.
Also, the market’s reacting to both the coronavirus pandemic AND its effect on the economy. Watch for good news and bad news alike. As a general rule, coronavirus-related stocks are weaker when the overall market is stronger. In other words, the market moves inverse to coronavirus stocks.
With that in mind…
It’s like when bitcoin was hot. And it was the same for Ebola, police equipment, weed stocks, oil, low float … whatever the hot sector. When it’s hot, it’s hot. Headlines create demand. So watch for news and press releases.
But also be aware…
The Dow dropped 330 points in three minutes on April 23 on negative coronavirus news. The World Health Organization (WHO) leaked negative results about experimental drug remdesivir. The antiviral drug’s manufacturer, Gilead Sciences (NASDAQ: GILD), disputes the report.
This is what it looked like on the DIA SPDR chart from April 23:
As you can see, it was a fast sell-off on the failed trial leak. The lesson: don’t overstay your welcome in any stock right now. (Remember, roughly 75% of stocks follow the overall market.)
Let’s take a look at…
CytoDyn Inc (OTCQB: CYDY)
CytoDyn Inc is currently running two clinical trials for COVID-19 patients. The stock first spiked on March 27. The company had announced its drug leronlimab was being tested on COVID-19 patients.
Take a look at the CYDY six-month chart:
CytoDyn has continued to stay relevant throughout the coronavirus pandemic…
- On April 1, the company filed a clinical trial protocol with the FDA. It was CytoDyn’s second clinical trial protocol to treat COVID-19 patients.
- April 24 the company announced an upcoming conference call with investors. Like DECN, the stock spiked on the news before the news.
- Unlike DECN (the next stock below), the conference call on April 27 caused the stock to spike more. The company announced Vyrologix as a proprietary name for its top COVID-19 candidate, leronlimab. I thought it would be a classic ‘buy the rumor, sell the news’ situation. Instead, the stock spiked as you can see on the chart below.
Check out the CYDY five-day chart:
As you can see, CYDY trended steadily up in late April. I traded CYDY on April 28 — taking the dip buy into a classic morning panic pattern for a profit of $700.** Keep an eye on this stock for more trading opportunities.
[**Please note my results are not typical. I have exceptional knowledge and skills developed with time and dedication. Most traders lose money. Do your due diligence and never risk more than you can afford.]
Now, before I get to the next stock…
Expect the Worst and You’ll Never Be Disappointed
IMPORTANT NOTE: the SEC halted trading on the next stock on this list. I kept it on the list for two reasons…
First, on April 23 it was the best example of a classic morning panic I’ve seen this year.
Second, it reinforces one of my most important rules…
Expect the worst and you’ll never be disappointed.
Decision Diagnostics Corp (OTCPK: DECN)
On April 24, the SEC halted trading of DECN. The H10 halt happens when a company isn’t current with its filings. This can happen with sketchy low-priced stocks. Do NOT get attached to a stock. Instead, trade the ticker. Read more about H10 halts here.
Decision Diagnostics is a home testing device manufacturer. Before the pandemic, the company focused mostly on diabetes test kits.
DECN spiked on March 11 when the company provided a first look at its new GenViro™ coronavirus screening kit. Since then, a series of press releases drove the stock as high as 49 cents a share on April 23.
Here’s the DECN three-month chart:
On April 23, a disappointing press release created a big sell-off. It turned into the best morning panic dip buy opportunity of the year. I wrote about the setup in this post: How I Called the Best Morning Panic So Far This Year.
Check out the DECN chart from April 22–23 below:
DECN turned into one of the best tickers of the year for many students in chat. Check out these comments from Challenge students…
DECN Comments From the Trading Challenge Chat on April 23
10:38 AM harrycorker → timothysykes: “Nailed $DECN today, first proper dip buy!! Thank you Tim!!!!”
0:39 AM hot20: “Incredible to see so many people banking on $DECN!”
10:48 AM bao_tran33: “wow I haven’t seen a chart that clean as $DECN for a while. money on the way down money on the way up!”
10:49 AM nbn707 → timothysykes: “God bless this pattern! caught everything on my screen recording too. a great resource for lifetime!”
03:26 PM DeanHiser → timothysykes: “Tim you nailed it on $DECN. Thanks so much for your alerts yesterday and today. You are an excellent mentor. So blessed to be part of your group.”
Opko Health (NASDAQ: OPK)
OPK is a coronavirus test play. The stock spiked on March 5 after the company issued a press release announcing it would offer coronavirus testing.
After dropping back to previous support to start April, the stock is trending upward. The catalyst was 24-hour turnaround inpatient testing services for several hospitals.
Here’s the OPK three-month chart:
OPK spiked again on April 20 when Rite Aid chose Opko to provide kits for its drive-up testing services. Take a look at the OPK five-day chart for April 20–24…
OPK is a good example of why you should watch former runners in a hot sector. A lot of people took OPK off their watchlist going into April.
Pluristem Therapeutics Inc. (NASDAQ: PSTI)
Pluristem Therapeutics develops cell-therapy products for inflammatory conditions. The stock has spiked several times during the coronavirus pandemic.
First, check out the PSTI three-month chart:
On March 12, the company partnered with the Charité University of Medicine in Berlin. Together they’re developing a treatment for COVID-19–related respiratory inflammation. PSTI ran from $3 to $4.19 intraday before pulling back.
On March 30, PSTI spiked again after announcing the treatment of three COVID-10 patients in Israel. The trial is part of a government-backed compassionate-use program.
The biggest moves came in April. Check out the PSTI 15-day chart:
PSTI spiked on April 9 when the company announced positive preliminary results from the patients in Israel.
The most recent move came when €50 million in non-dilutive funding was announced. The funding comes from the European Investment Bank.
Note: PSTI is no longer a penny stock. More than one stock on this list has run beyond penny-stock prices. They’re still the best coronavirus stocks right now. Plus, several students report doing well trading them.
Vaxart Inc. (NASDAQ: VXRT)
Vaxart is a biopharma specializing in antiviral medications. The company was one of the early movers in the COVID-19 fight. On January 31, it announced a coronavirus vaccine program. VXRT spiked from $1.05 to $1.83 in two days on that news.
Then on February 25, the WHO raised concerns about the spread of coronavirus beyond China. Many coronavirus vaccine stocks — including VXRT — spiked over the next three days.
Take a look at the VXRT six-month chart:
On April 21, Vaxart announced positive pre-clinical data for its oral vaccine program. The stock spiked in pre-market trading. Then it largely held its gains on massive volume.
Here’s the VXRT 10-day chart:
As you can see from the chart, VXRT is still holding above $3 per share. It’s within striking distance of the 52-week high. I’d love to see a big morning panic or a morning spike with a strong news catalyst.
GenMark Diagnostics, Inc. (NASDAQ: GNMK)
GNMK is yet another coronavirus test play. The stock first spiked on March 2 after the company announced initial shipments of research-only test kits to Hong Kong and several U.S. customers.
It traded the rest of March very choppy, like the overall market. I don’t like messy charts. But on April 7, GenMark increased Q1 revenue guidance — boosted by COVID-19.
Check out the GNMK three-month chart:
As you can see, the stock has climbed steadily since. Here’s the 15-day GNMK chart:
It’s not perfect, but the GNMK 15-day chart looks like the “stair stepper” pattern from my “Pennystocking 101” guide.
Inovio Pharmaceuticals, Inc. (NASDAQ: INO)
Inovio Pharmaceuticals develops DNA-based vaccines. On March 3, the company announced an accelerated timeline for a SARS-CoV-2 vaccine with human trials to start in April. The stock went from roughly $5 to $19 in five days.
Here’s the INO six-month chart:
I traded INO during the spike in March. I bought in the $9s and sold in the $10s. But it was a scary stock — so I was happy for the win.
Grittani reported a much bigger position and making around $3 per share for a $97K win.**
[**Please note these results are not typical. These traders have developed exceptional knowledge and skills developed with time and dedication. Most traders lose money. Do your due diligence and never risk more than you can afford.]
INO dropped back to the $6–$9 range after its initial spike. For me, that’s a mid-range play. I tend to avoid those and wait for either a big morning panic or a spike with news and volume.
Inovio has two vaccine candidates for SARS-CoV-2. Both are collaborative efforts and both show promise. And that’s kept INO trending upward.
Check out the INO 10-day chart:
One of the INO Phase-1 clinical trials uses a smart delivery device called the CELLECTRA® 3PSP. It received $5 million in funding from the Bill and Melinda Gates Foundation. In penny-stock land that’s called a billionaire play.
INO is a little high priced for me now. But a big morning panic would interest me.
Co-Diagnostics Inc. (NASDAQ: CODX)
CODX has been on and off my watchlist since February. That’s when the company announced its COVID-19 testing kit received regulatory clearance for the European market. The stock ran from $4.42 to $21.75 in three days.
Here’s the CODX six-month chart:
A series of news catalysts is keeping CODX on the coronavirus stocks watch list.
- April 3: Co-Diagnostics Logix Smart COVID-19 test kit was granted Emergency Use Authorization (EUA) by the FDA.
- April 11 (a Sunday): Co-Diagnostics was mentioned in this article about individual states developing increased testing strategies. The stock spiked the next day.
- April 16: the company received validation for its COVID-19 test technology.
- April 20: the company announced a rise in sales of its test kit.
Check out the CODX 10-day chart:
Again, I’ll be updating this post often. Come back daily for the latest updates. It’s like a rolling watchlist while the coronavirus sector stays hot.
Before you go, here are some basics on…
The most important thing you can do if you’re new to trading or struggling is to focus on the process. Focus on becoming consistent. Learn to cut losses quickly.
Remember, it’s a marathon and not a sprint. What can you do today so you can learn? What can you do this week, month, or year? That’s the kind of thinking it takes to eventually become a self-sufficient trader.
Even if you make no money whatsoever for a full year … try to learn the strategies that work best for you. And even if you have to sit out the hot coronavirus sector now, study every day. With most of the country still under shelter-in-place orders, you really have no excuse. Stop watching Netflix and learn about the stock market!
Watch these stocks. Watch for any stocks with coronavirus news and see how the market reacts.
To get a better handle on this volatility, read “The Complete Penny Stock Course” and take notes. These patterns we’re seeing aren’t new. You’ll see them all when you study the book.
You’ll also learn why it’s so important to…
Choose Your Battles Well
Your battle is NOT against losses. It’s against laziness, stubbornness, ignorance, and a lack of discipline. If you want the freedom trading can bring, you have to study and develop self-discipline.
I’ve had messages the last few weeks saying, “You timed it perfectly. No one else can do it.”
That’s not true. I rarely time any trade perfectly. I take a small sliver. Someone like Grittani takes a bigger sliver. Anybody can do this … but you MUST study. It won’t be easy.
The other big obstacle is misinformation. There’s SO much misinformation going on in this industry. The good thing about a market like this is … it exposes newbies, fakes, and frauds. But you have to work daily to avoid being included on that list.
Here’s what to do…
Prepare for Battle
There are so many plays right now. Watch them all and get enough sleep so you come to the market fresh every day.
Study the Past
Studying can seriously pay off. And if you want to be better prepared for these coronavirus stocks that are moving so fast … study the past. Don’t trade until you’ve armed yourself with knowledge. That’s like entering a war zone armed with a butter knife.
MUST WATCH: “The Volatility Survival Guide”
This kind of market doesn’t come around very often. There are literally too many plays to keep track of. But that means the market is super volatile. Which is why I encourage you to watch “The Volatility Survival Guide.” It’s brand new, zero-cost, and created specifically for this crazy volatile market.
When you watch “The Volatility Survival Guide” be sure to take advantage of the special deal to…
Every day you should use StocksToTrade. Use the built-in scans AND the Twitter search tool. Use it to watch for press releases and news. Watch for new spikers near the market open.
Again, when you watch “The Volatility Survival Guide” you’ll get a special deal. PLUS … Tim Bohen, the StocksToTrade lead trainer shows you how to make the most of the platform as part of the guide.
It’s OK to Be a Little Speculative
Normally I wouldn’t say to buy or even watch speculative stocks. But when a sector gets hot like marijuana, Ebola, crypto, or … like the coronavirus is now…
… you can be a little more speculative. You can even be a little more aggressive. Just be careful. How?
By doing these things…
Play small. Take small position sizes on speculative plays. This is not so much about making as much money as possible. It’s about testing different philosophies and trying different patterns.
Focus on volatile stocks. Not every stock in this post has spiked every day. It doesn’t work that way. Focus on the most volatile stocks each day.
Recognize short squeezes. Again, use StocksToTrade’s social media search tool. Short sellers are like vegans — they’ll tell you. Twitter is their favorite place to tell the world.
Keep learning. This is an ongoing process. You won’t get it all at once and you’ll ALWAYS have room for improvement. Just ask all my top students. They’re obsessed with becoming better traders.
With or Without You
Another hot sector is around the corner. And these plays will keep happening with or without you.
The question: Will you be lazy or dedicated? Most students don’t want it bad enough. SO many people send me emails and DMs saying they’re gonna be my next millionaire student. But even those who claim to want to be millionaires don’t put in the time.
Who’s most fit to be my next millionaire student?
What do you think about all the coronavirus plays? When you comment below, let me know if you’re lazy or dedicated. I love to hear from all my readers!