Markets closed out the week on shaky ground despite President-elect Joe Biden laying out the groundwork for his $1.9 trillion stimulus and bank reporting solid earnings which led to reserve releases at J.P. Morgan (JPM) and Wells Fargo (WFC). The idea that the fiscal stimulus package had been priced into markets is a fair assessment. It can also be argued that the $1.9 trillion price tag is a little light of some expectations. There is also the idea that the market is priced to perfection as fiscal stimulus and solid earnings have been priced into equities over the past couple of weeks.
Looking ahead to next week, participants will keep a watchful eye on the inauguration of Joe Biden on Wednesday. Concerns over potential violence will have market participants cautious at the start of the holiday-shortened week. Earnings will move into focus as financials, big tech and transports will provide insight into corporate performance in Q4. The Q1 outlook from these organizations will carry greater weight.
- Trivia Question- Since 1928, markets have seen positive returns in January 58 times compared to 35 years with negative returns. What two months had more positive returns over that time? (Answer below)
As for your clients, their focus has remained steady over the past couple of weeks. Electric vehicles, pharma, and big tech have been steady search destinations for the retail investors. However, there is a new fury theme to research patterns this week. Let’s take a look at some of the names your clients have been researching.
Here are some highlights from Retail searches this week –
|Rank||TOP STOCKS – BY Retail (Total Traffic) This Past Week||Ticker||TOP STOCKS- BY RETAIL (Surge* Traffic) This Past Week||Ticker||TOP ETFs By RETAIL (Total Traffic) This Past Week||Ticker|
|1||Zomedica Pharmaceuticals Corp||ZOM||Vca Inc||WOOF||SPDR S&P 500 ETF||SPY|
|2||Tesla Inc||TSLA||Crescent Acquisition Corp Cl A||CRSA||ARK Innovation ETF||ARKK|
|3||Nio Inc||NIO||Datasea Inc||DTSS||Invesco QQQ||QQQ|
|4||Churchill Capital Corp IV Cl A||CCIV||Charah Solutions Inc||CHRA||ProShares Ultra VIX Short-Term Futures||UVXY|
|5||Bionano Genomics Inc||BNGO||Steel Partners Hlds||SPLP||iShares Global Clean Energy ETF||ICLN|
|6||Apple Inc||AAPL||Obseva Sa||OBSV||ARK Genomic Revolution ETF||ARKG|
|7||Jaguar Health Inc||JAGX||Surna Inc.||SRNA||Invesco Solar ETF||TAN|
|8||Gamestop Corp||GME||Schweitzer-Mauduit International||SWM||iShares Russell 2000 ETF||IWM|
|9||Plug Power Inc||PLUG||China Infrastructure Construction Corp.||CHNC||SPDR Gold Trust||GLD|
|10||Sundial Growers Inc||SNDL||Atlantic Power Corp||AT||VanEck Vectors Semiconductor ETF||SMH|
|11||Facebook Inc||FB||Lexicon Pharmaceutcl||LXRX||iShares Silver Trust||SLV|
|12||Alibaba Group Holding||BABA||Dbv Technologies Ads||DBVT||Technology Select Sector SPDR Fund||XLK|
|13||Ocugen Inc||OCGN||Ceragon Networks Ltd||CRNT||Energy Select Sector SPDR Fund||XLE|
|14||Castor Maritime Inc||CTRM||Aerovironment Inc||AVAV||ARK Fintech Innovation ETF||ARKF|
|15||Fuelcell Energy Inc||FCEL||Organogenesis Holdings Inc||ORGO||Financial Select Sector SPDR Fund||XLF|
|16||Visa Inc||V||Express Inc||EXPR||ProShares UltraPro QQQ||TQQQ|
|17||Adv Micro Devices||AMD||I-ON Digital Corp.||IONI||ARK Web x.0 ETF||ARKW|
|18||Ideanomics Inc||IDEX||Viveve Medical||VIVE||Global X Lithium ETF||LIT|
|19||Gevo Inc||GEVO||Vertex Energy||VTNR||ETFMG Alternative Harvest ETF||MJ|
|20||FUBOTV INC.||FUBO||Senseonics Holdings Inc||SENS||VanEck Vectors Gold Miners ETF||GDX|
*- Surge data is based on the average traffic from the past two days compared to the average traffic from the previous market week.
- Zomedica Corp (ZOM), #1 on Top Stocks by total traffic- This is a development stage veterinary diagnostics and pharmaceutical company. ZOM was trading at six cents in early November before finding buying interest. It rallied all the way to $1.48 on Tuesday before losing some momentum and slipping back to the $0.97 area. Part of the reason for the rally was the initial public offering of Petco (WOOF) which had pet plays front and center (more on WOOF below). The other driver was investors buying shares ahead of the company’s launch of its Truforma point-of-case diagnostic platform for cats and dogs on March 30. ZOM now has a market cap of approximately $454 mln despite not having any revenue.
- Gamestop (GME), #8 on Top Stocks by total traffic- A big week for Gamestop as shorts in the name were caught in a massive squeeze. The stock was able to rip above the $20 psyche resistance level and pressed as high as $43.06 on Thursday before seeing some late profit taking on Friday. GME reported its holiday sales on Monday which saw a positive increase to its same store sales. E-commerce sales rose an incredible 309%, suggesting its recent push into digital sales is paying dividends. GME also announced the addition of three new Board members at the behest of activist investor R.C. Ventures. Short interest remains elevated so volatility should continue.
- Advanced Micro Devices (AMD), #17 on Top Stocks by total traffic– Under the stewardship of CEO Lisa Su, AMD has seen a turnaround of its business and been one of the strongest performing stocks the past two years. Part of the strength in AMD shares has been investor awareness that it has taken market share from chip giant Intel (INTC). Last week, Intel announced that it would replace CEO Bob Swan with VMWare’s Pat Gelsinger. This news outshined announcements by AMD introducing a new Ryzen 5000 series chip at the Consumer Electronics Show. AMD shares fell 10% following the INTC transition news and is now testing its 50 day moving average ($89) for key support.
- Petco Health & Wellness (WOOF), #1 on Top Stocks by surge traffic- WOOF was the latest highly-anticipated IPO to launch last week. The pet supply retailer priced its 48 million share IPO at $18 which was above the expected range of $14-17 range. WOOF would open for trade at $26, 44% higher than the IPO price. The stock rallied to $31.08 before giving up some of its gains, slipping back to the $27 level to close the week. The WOOF IPO also helped provide a boost to the ZOM rally as retail investors, hungry for get-rich-quick plays, piled into shares of ZOM. It has been a busy start for the IPO market in 2021. It will be interesting to see if WOOF fails to hold above its IPO price. This could mark a potential near-term lull for the new company issuance. That could have broader implications for the overall markets.
Trivia Answer- December has had 68 winning months with 25 losing months and April has had 60 winning months with 33 months of negative returns.