Biotech with a side of Diwali

Formal education will make you a living; self-education will make you a fortune.” ~ Jim Rohn

Dear Trader,

Welcome to today’s edition of Wall Street Connected.

Equites traded with a bump in volatility this week as dozens of biotechnology companies made new highs and new lows in a race to perfect a COVID-19 vaccine.

With Pfizer Inc. (PFE) having reported a 90% effective vaccine to kick off the week, shares of smaller biotechnology companies such as Moderna Inc. (MRNA) and ALX Oncology Holdings Inc. (ALXO) have also traded higher as emerging candidates to produce an effective COVID-19 vaccine.

With competition heating up in the biotechnology space, we’re witnessing biotechnology as the #1 industry by total traffic amongst financial professionals through this past week.

RANKTOP INDUSTRY (EQUITIES) BY FAs (Total Traffic) – This Past WeekTOP INDUSTRY (EQUITIES) BY FAs (Surging Traffic) – This Past Week TOP SECTORS/CATEGORIES (ETFs) BY FAs (Total Traffic) – This Past WeekTOP SECTORS/CATEGORIES (ETFs) BY FAs (Surging Traffic) – This Past Week
1BiotechnologyDrugstores and Proprietary StoresEquity – Large Cap Growth EquitiesEquity – Mid Cap Blend Equities
2Drug Manufacturers – Specialty & GenericSemiconductors and related devicesEquity – Leveraged EquitiesCommodity – Commodities
3Software – ApplicationMotion picture and video productionEquity – Technology EquitiesBond – Preferred Stock/Convertible Bonds
4Internet RetailREIT – Hotel & MotelCommodity – Precious MetalsCommodity – Agricultural Commodities
5Auto ManufacturersCustom computer programming servicesEquity – All Cap EquitiesBond – Leveraged Bonds
6Credit ServicesHome Improvement RetailEquity – MaterialsEquity – Industrials Equities
7Internet Content & InformationTravel ServicesEquity – Alternative Energy EquitiesEquity – Latin America Equities
8Diagnostics & ResearchPackaged FoodsEquity – Small Cap Growth EquitiesEquity – Transportation Equities
9SemiconductorsMetal MiningEquity – Health & Biotech EquitiesBond – Inflation-Protected Bonds
10Drug Manufacturers – GeneralMedicinal and botanicalsVolatility – Leveraged VolatilityBond – National Munis
11Aerospace & DefensePharmaceutical RetailersEquity – Energy EquitiesEquity – MLPs
12ConglomeratesTruckingEquity – Industrials EquitiesEquity – Emerging Markets Equities
13Software – InfrastructureMedical Care FacilitiesEquity – Financials EquitiesEquity – Energy Equities
14Electrical Equipment & PartsPackaging & ContainersEquity – Small Cap Blend EquitiesEquity – Foreign Large Cap Equities
15Consumer ElectronicsAirlinesEquity – Asia Pacific EquitiesEquity – Inverse Equities
16EntertainmentIntegrated Freight & LogisticsVolatility – VolatilityEquity – Small Cap Value Equities
17Oil & Gas E&POil & Gas DrillingEquity – Large Cap Blend EquitiesCommodity – Metals
18Specialty RetailInsurance – Property & CasualtyBond – Government BondsCommodity – Leveraged Commodities
19Packaged FoodsDepartment StoresEquity – China EquitiesEquity – Europe Equities
20Specialty Industrial MachineryREIT – ResidentialCommodity – Oil & GasEquity – Large Cap Value Equities

While a vaccine led global equity rally kicked off the week, global equities fell as the week progressed, European equities in particular.

Many traders and investors are unaware of the fact that the performance of European equities and Chinese equities have a direct impact on the performance of U.S. futures markets.

And through this past week, European equity Exchange Traded Funds ranked #19 in surging traffic amongst financial professionals…

What We’re Reading:

  1. Oil stocks have had a wild ride through the coronavirus pandemic of 2020. This past week, volatility in oil surged to the surprise of many traders. Full story…
  2. Crypto has been a hot topic on Wall Street. With crypto crimes decreasing in 2020, could Crypto increase in popularity in 2021? Continue reading…
  3. Diwali festivals have kicked off in India after months of lockdowns. With an increase in festivities, are precautionary measures being implemented? Take a look…

What We’re Watching:

Earnings season is notorious for isolating individual stocks which may be leaders or laggards in their respective sector.

Stocks can move 40% or more in one earnings report.

The question many traders are left with is “how can I trade stocks through earnings season?”

Pros & Cons has your answer.


P.S. Did you know Chinese investments can outperform U.S. investments? There’s a reason Chinese investments have become more and more popular. Check them out by clicking here.

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