Wuhan Coronavirus: 9 Stocks to Watch

wuhan coronavirus 9 stocks to watch

The deadly coronavirus strain that emerged in Wuhan, China continues to spread around the globe. As of the time of this writing, there are 4,500 confirmed infected people around the world and at least 106 deaths.

View this post on Instagram

 

⚠WARNING GRAPHIC IMAGES⚠ Please share this URGENT post about the coronavirus epidemic with your followers as the origin of the virus has been traced to the zone of the Wuhan market where live wild animals like snakes, rats, bats and monkeys were traded before China instituted a temporary ban yesterday. But a temporary ban is NOT enough, WE MUST use our social media platforms to spread awareness and BAN WILD ANIMAL TRADING WORLDWIDE as this is EXACTLY what caused the SARS virus that killed nearly 800 people in 2003! SARS was 17 years ago and yet these markets are doing the exact same thing, selling live wild animals in unhygienic conditions that create diseases with devastating consequences for the entire human race! This new virus, which has no vaccine, has killed 82 people with 2,887 confirmed cases in 15 countries, numbers which have increased 50% SINCE YESTERDAY and 60 million more people are on lockdown to prevent further spreading. To stay updated in real-time our US followers can now text us at 323-310-1679 and also follow @karmagawa on Instagram too. Please pray for the world and share this URGENT post with your followers and tag people, celebrities, influencers and news media that need to see this and let’s work together to PERMANENTLY ban the trading of wild animals that create these deadly viruses! #coronavirus #endanimalcruelty #coronavirusoutbreak #karmagawa

A post shared by Karmagawa (@karmagawa) on


Coronavirus — Better Safe Than Sorry

Tim Sykes reads news about the Wuhan coronavirus
© 2020 Millionaire Media, LLC

Sadly, the real infection and death tolls are likely higher. Some people refuse to go to the hospital and many people have yet to show symptoms. The incubation period for this year’s strand of the coronavirus is two weeks. In layman’s terms, it takes about two weeks before people begin to show symptoms.

That’s leading some experts to estimate that the total number of infections is at least 30 times higher than the official total.

It’s still too early to understand the potential of the disease. The current reports make it seem like the coronavirus isn’t very deadly and that people, especially those outside China, have nothing to worry about. I’d like to believe these reports, but I’m skeptical — better safe than sorry.

Coronavirus Stocks on My Watchlist

I don’t think it’s time to isolate myself and stock up on supplies … yet. On January 27, there were only five confirmed coronavirus cases in the U.S. Given there are over 300 million people in the country, I think it’s a little early to panic.

There are over 110 people in 26 states under surveillance for coronavirus. If the majority of these people have the disease, it’ll get a little scarier. But this isn’t the first time an outbreak has made its way to the U.S. In 2014, people thought Ebola would end the human race, but the authorities quickly mitigated the disease’s risks.

Even though Ebola was swiftly handled, there were multiple trading opportunities around people’s fear. Small, low-float companies love to take advantage of a crisis. Once traders notice the pattern, sympathy plays can emerge … and light up the penny stock market.

The same thing that happened with Ebola is now happening with the coronavirus.

If you don’t understand sympathy plays, you need a solid overview of day trading. Check out this book written by Jamil, one of my top Trading Challenge students: “The Complete Penny Stock Course.”

What to Watch During the Coronavirus Outbreak

Tim Sykes studies constangly
© 2020 Millionaire Media, LLC

The first major wave for coronavirus stocks is over. Many of the stocks pulled back because they were running for no fundamental reason. These stocks were running on people’s emotions.

Anytime there’s an outbreak, the media overhypes the disease. That tends to make people think it’s doomsday. This week, the media toned down the rhetoric … but I haven’t seen reputable news about a cure or working vaccination.

Over the next few weeks (or maybe months) — I’ll be watching the news surrounding the coronavirus. If you remember the cannabis sector, shipping sector, or blockchain sector — they all lasted for months. When a stock is part of a strong sector, it doesn’t die easily.

I won’t jump to conclusions, but it’s possible this outbreak isn’t over. And if the outbreak worsens, I’ll capitalize on people’s emotions as the sector heats up for a second wave of spikes.

Now, here are my favorite stocks spiking because of the coronavirus outbreak…

NanoViricides, Inc. (NASDAQ: NNVC)

The stock market always has certain stocks that are stronger than others. The financial media likes to call these stocks sector leaders. Other stocks in the sector tend to follow the leaders — if the leader is strong, the entire sector is strong. Similarly, when the leader starts to fade, the followers quickly reverse.

The most popular example of sector strength is FANG stocks. But over the years, each member of the FANG group has taken turns being the leader. Today’s sector leader might not be the leader next week. It’s important to watch the entire sector to find the strongest stocks.

In the coronavirus sector, NNVC has been the leader. On the initial outbreak news, NNVC spiked from the mid-$3s to over $13 a share before pulling back. This 400% move sparked the sector, and many other coronaviruses and biotech stocks followed.

coronavirus stocks to watch
NNVC chart: 2-month, 1-day candle  — courtesy of StocksToTrade.com

Looking at the chart, you can see the wild moves these types of stocks can make. After its massive first run, NNVC gapped down huge. A lot of people thought the virus hype was over…

But as more cases were confirmed and the virus spread around the world, the stock continued to pick up momentum. Fear continued to spread on Friday, January 24, and over the weekend. Which led to a huge gap up.

These types of plays run solely on hype and fear surrounding the virus. The fear dissipated on January 28 which caused the big pullback. If fear rises again, this could rebound nicely.

Some of my biggest trades come from this hype pattern. It can be risky … you don’t know if the hype or fear will continue. But when you’re right — especially when there’s strong sector momentum — the returns can be fantastic.

One of my top students, Roland Wolf, grew his account exponentially using this technique during the bitcoin boom.**

[**Note that these results aren’t typical. This student put in the time and dedication and has exceptional skills and knowledge. Most traders lose money. Always remember trading is risky … never risk more than you can afford.]

Novavax, Inc. (NASDAQ: NVAX)

NVAX is another vaccine stock running on speculation. People think the company might play a role in finding a coronavirus vaccine. There are no facts to support this claim, but let people be degenerates.

NVAX chart watch this stock during virus outbreaks
NVAX chart: 2-month, 1-day candle  — courtesy of StocksToTrade.com

Instead of investing and gambling your money on these stocks, day trade them like my students and I do every day. Not sure how to day trade? Or need a solid stock market education? Apply to my Trading Challenge Today.

Co-Diagnostics, Inc. (NASDAQ: CODX)

CODX caught a lot of short-sellers off guard. The stock initially ran with NNVC. But it had an offering after the first day of its run — giving short-sellers a false sense of confidence. Once the coronavirus outbreak got worse, CODX gapped huge.

CODX chart - stock could run during wuhan coronavirus outbreak
CODX chart: 2-month, 1-day candle  — courtesy of StocksToTrade.com

Alpha Pro Tech, Ltd. (AMEX: APT)

APT is the only AMEX stock on my watchlist. It trades a little differently than Nasdaq stocks, but I love how clean the breakout on this chart is.

APT chart
APT chart: 2-month, 1-day candle  — courtesy of StocksToTrade.com

APT ran over 100% from the $3.50 range to almost $8 a share before pulling back yesterday … Never underestimate the power of sector momentum. 

Aethlon Medical, Inc. (NASDAQ: AEMD)

AEMD didn’t run directly with the other stocks in this sector. But it’s not uncommon for some stocks to start their runs a little later than the leaders.

AEMD on list of stocks to watch during wuhan coronavirus scare
AEMD chart: 2-month, 1-day candle  — courtesy of StocksToTrade.com

So far … AEMD spiked from the $2.50s to over $4 a share. Like the others, it pulled back hard but hasn’t broken any major support levels yet.

Lakeland Industries, Inc. (NASDAQ: LAKE)

Some of you may remember this stock. My top student, Tim Grittani, took the largest loss of his career on it over five years ago. The last time LAKE ran was in 2014 when the Ebola crisis made its way to the U.S. The young Grittani shorted this stock (using margin) too early and took nearly a $300,000 loss.

could LAKE run again during coronavirus outbreak
LAKE chart: 2-month, 1-day candle  — courtesy of StocksToTrade.com

Grittani has avoided LAKE thus far as he claims in his tweet:

The large loss he took on LAKE taught him to wait for the backside of a move. LAKE will eventually fade back. If the trade is right, I’m sure he’ll take advantage of it when the time comes.

Oncolytics Biotech Inc. (NASDAQ: ONCY)

ONCY falls into this sector, and I’m watching it closely. This stock hasn’t spiked yet. If it starts spiking with meaningful volume, it might become my top watch.

ONCY chart
ONCY chart: 2-month, 1-day candle  — courtesy of StocksToTrade.com

ImmuCell Corporation (NASDAQ: ICCC)

ICCC is a low-float stock that can put in some huge moves. It ran with NNVC and CODX on the first day of the sector strength. It hasn’t had a secondary run yet.

ICCC chart: 15-day, 1-day candle  — courtesy of StocksToTrade.com

Similar to ONCY, if it starts uptrending on significant volume I’ll be interested. I won’t try to predict when or if ICCC will spike. It may not. But I want to be prepared if the trade presents itself.

CytoDyn Inc. (OTC: CYDY)

OTC stocks have been SUPER hot for far in 2020. When OTCs start moving, it’s not uncommon for them to spike for three or four days. On January 28, CYDY released a PR discussing the coronavirus.

CYDY chart - watch this stock during virus scares
CYDY  chart: 2-month, 1-day candle  — courtesy of StocksToTrade.com

CYDY immediately jumped to the top of my watchlist because of the beautiful breakout chart combined with a great catalyst. This could totally fail, but I really like the setup.

Congrats to My Students

Here’s a quick shout-out to some of my students** who nailed these sector plays…

From the Trading Challenge Chat Room

January 24: 

10:30 AM redwagonrider: $NNVC nice setup. good consolidation. just gotta be patient with your fill to get good r/r. traded in at 7.12 out at 6.95 chopped out, and didn’t make an effort to get. solid fill. Damn

10:32 AM hichamzer: $NNVC un 7.09 out 7.73

11:10 AM migtrader: Of all stupid mental mistakes I go long $NNVC a 1,000 shares …. it rips off a .50 move in 30 secs I go to exit … i’ve only made $5 ….ahhhh 10 shares ??? I’m going to meditate now

11:59 AM markcroock: long 2500 $NNVC 8.75 thinking this ramps through 10 later will give it 30-50 cent stop

January 27: 

9:08 AM kroyrunner: pretty wild sector with all the virus stuff – everyone stay safe! remember it was exactly this kind of action combined with stubbornness that led to my massive $LAKE loss a few years ago

January 28: 

9:38 AM markcroock: joined Jack on the $CYDY trade 1.19 long

11:15 AM Huddie: So far, the only reshort opp I’ve truly considered was $Codx. Not really in love with any of the other slow choppy grinds. I think that’s going to be it for me, in terms of button-pushing. I imagine most of the stocks go lower, I have zero positions, and I look forward to the next extended, first red day trade. Good luck!

11:17 AM markcroock: still got 7500 short $CODX gonna try stay patient for low 2’s flush end of day

Think you can cut it in my Trading Challenge? Apply today and find out.

More Comments From the TimAlerts Chat Room

stocks to watch
© 2020 Millionaire Media, LLC

January 23: 

11:06 AM amsbeats: good ole $LAKE the stock Tim Grittani lost over 100k on lol

January 24: 

10:21 AM Jaykian720: $APT long 5.64 — target @ $6 — speculative but potential cases of the virus in the UK, so we could see some follow-up sector momentum

10:33 AM Jpocock: $NNVC – in @ 6.90 out @ 7.75 (although previous day spike goes well up to around $12 – maybe I should’ve held)

January 27: 

9:05 AM HellC: Damn I called 13$ for $NNVC according to my chart and didn’t stick to my plan….. Fml

January 28: 

8:20 AM 786sniper: $CODX. news. CEO was on CNBC squeak box Asia last night.

[**Note that these results aren’t typical. It takes time, dedication, exceptional skills, and knowledge to trade well. Most traders lose money. Always remember trading is risky … never risk more than you can afford.]

How to Watch the Wuhan Coronavirus Going Forward

There’s a lot of speculation in the news about people being cured of the coronavirus. As far as I can tell, these are just rumors. No authoritative organization has issued a statement about a coronavirus cure or vaccine. Until there’s an announcement, it’s safer to assume there’s no treatment.

I truly hope the global army of doctors, researchers, and scientists working on a coronavirus vaccine can find one before the outbreak gets out of hand. It’s always tragic to see innocent people lose their lives.

Coronavirus Sector Momentum

It’s been a while since we’ve had true sector momentum in the market. I think a lot of newbie short sellers will get ahead of themselves.

Sector momentum is far different than a single stock that runs for a day or two before crashing. Sectors can last for days, weeks, or even months. It’s very dangerous to try to short them before the backside of the move begins.

Keep an eye on these nine coronavirus stocks. I don’t think this sector is done yet … but I don’t try to predict the move or the news. I wait for the plays to set up again and react to strength.

Be prepared for the next possible sector run — apply for my Trading Challenge today.

My students and I waited a long time for a strong sector to emerge. The next few weeks could be full of opportunities. If this virus gets worse, protect yourself and stay healthy.

Tell me what YOU think of the coronavirus … Is this more serious than people think?

Share