Advisors in Focus- January 3, 2021

This represents the first Advisors in Focus letter of 2021, putting a bow on a tumultuous 2020. Indices ended the year on a positive note but questions remain as valuations are elevated. COVID remains a key story for economic growth as countries digest the impact of social gatherings during the holiday season. Tuesday’s Senate runoff in Georgia could pose some near-term risk for the markets as a sweep by Democrats would likely change the tax landscape. Fourth quarter earnings season is still two weeks away but participants will be given an early glimpse into the semiconductor space when Micron (MU) reports its November-end Q1 earnings Thursday after the close. As we prepare for the first week of 2021, let us first take a look back at what your clients were researching during the holiday week.

Trivia Question- TSLA was the top performing S&P 500 stock in 2020 (+743%). Can you name the other four stocks in the top 5? (Answer below)

Searches by retail investors in the final week of 2020 were consistent with previous trends. TSLA continued to occupy the top searched ticker in terms of total traffic. Some of the other usual suspects included NIO, AAPL, BABA, AMZN, and V. Rather than rehash stories on these names, we wanted to take a look at some of the newcomers in total and surge traffic that represent opportunity in 2021. The end game will be generating  investment ideas for your clients.

TrackStarIQ Data

Here are some highlights from Retail searches this week –

RankTOP STOCKS – BY Retail (Total Traffic) This Past WeekTickerTOP STOCKS- BY RETAIL (Surge* Traffic) This Past WeekTickerTOP ETFs By RETAIL (Total Traffic) This Past Week Ticker
1Tesla IncTSLABonso Elec Intl INBNSOSPDR S&P 500 ETFSPY
2Bionano Genomics IncBNGOHoth Therapeutics IncHOTHARK Innovation ETFARKK
3Alibaba Group HoldingBABAIntrepid Potash IncIPIARK Genomic Revolution ETFARKG
4Nio IncNIOEGPI Firecreek, Inc.EFIRInvesco QQQQQQ
5Apple IncAPPLRed Lion Hotels CorpRLHProShares Ultra VIX Short-Term FuturesUVXY
6Ocugen IncOCGNAshford IncAINCTechnology Select Sector SPDR FundXLK
7Gevo IncGEVOTGI Solar Power Group, Inc.TSPGiShares Silver TrustSLV
8Aerocentury CorpACYRaadr, Inc.RDARConsumer Discretionary Select Sector SPDR FundXLY
9FUBOTV INC.FUBOWest Coast Ventures Group Corp.WCVCiShares Russell 2000 ETFIWM IncAMZNDigirad CorpDRADInvesco Solar ETFTAN
11Visa IncVHall of Fame Resort & Ent COHOFVSPDR Gold TrustGLD
12Marathon Patent GrouMPOLendingclub CorpLCARK Web x.0 ETFARKW
13Eversource EnergyESCanaan Inc ADRCANVanEck Vectors Gold Miners ETFGDX
14Moderna IncMRNAAirnet Technology IncANTEVanEck Vectors Semiconductor ETFSMH
15Sundial Growers IncSNDLP F Inds Inc APFINProShares UltraPro QQQTQQQ
16Nano Dimension AdsNNDMAlpha and Omega SemiAOSLARK Fintech Innovation ETFARKF
17Jaguar Health IncJAGXHistogen IncHSTOEnergy Select Sector SPDR FundXLE
18Ideanomics IncIDEXHudson Capital IncHUSNiPath Series B S&P 500 VIX Short-Term Futures ETNVXX
19Zoom Video Communications Cl AZMPedevco CorpPEDiShares Global Clean Energy ETFICLN
20MicrovisionMVISAethlon MedicalAEMDDirexion Daily Small Cap Bull 3X SharesTNA

*- Surge data is based on the average traffic from the past two days compared to the average traffic from the previous market week.

Here is a list of names that retail investors were searching last week:

  • BioNano Genome (BNGO) #2 in total traffic; Life science play in the genome analysis space. Shares are up approximately 328% in December. Last Monday, the company disclosed its genome mapping platform, Saphyr, had been accredited in the United States by the College of American Pathologists. Maxim analyst Jason McCarthy said that this was a potential game changer. BNGO has not shown any signs of giving up its recent gains. Genome analysis promises to be a key theme in 2021 as we attempt to develop additional vaccines to battle COVID.
  • Microvision Inc (MVIS) #20 in total traffic; A volatile name last week as it operates in the closely monitored LiDAR space. This is an area that will remain in focus as a component for electric vehicles and autonomous driving. MVIS volatility picked up as Hindenberg Research released a short report that led to a 30% drop in share prices. The company also announced a secondary which did little to stem some of the concerns. The stock is coming back into key support at the $5 level which will keep it in play, particularly for day traders. 
  • Marathon Petroleum (MPC) #12 in total traffic; Refining oil company that is attempting to break back above the $40 level. The stock is up nearly 50% since late October. MPC found its way onto radars after unusual option activity led to an increased interest. Investors continue to look for attractive energy plays for 2021 and this early surge in MPC will have Financial Advisors taking a closer look. 
  • Bonso Electronics (BNSO) #1 in surge traffic; We are always interested to see a company be a top search with no apparent news to accompany the increased interest. This Hong Kong-based company sells electronic sensor-based and wireless products. The stock was up 71% on Friday after it broke above the $5 resistance level on volume. We will continue to monitor this name for further developments.  
  • Intrepid Potash (IPI) #3 in surge traffic; Last week, we discussed the potential for materials and chemicals in 2021. IPI is another play following remarks it made last week around potash prices which are up 31% quarter over quarter. The company attributed the improvement to good weather and compelling fertilizer economics which have spurred strong demand. Shares of IPI were able to break out above $18 on the news. This is a low float name with only 7.8 mln shares.

Trivia Answer- #2 ETSY (+301%), #3 NVDA (+122%), #4 PYPL (+117%), #5 LB (+106%).

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