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.

RANK	TOP INDUSTRY (EQUITIES) BY FAs (Total Traffic) – This Past Week	TOP INDUSTRY (EQUITIES) BY FAs (Surging Traffic) – This Past Week	TOP SECTORS/CATEGORIES (ETFs) BY FAs (Total Traffic) – This Past Week	TOP SECTORS/CATEGORIES (ETFs) BY FAs (Surging Traffic) – This Past Week
1	Biotechnology	Drugstores and Proprietary Stores	Equity – Large Cap Growth Equities	Equity – Mid Cap Blend Equities
2	Drug Manufacturers – Specialty & Generic	Semiconductors and related devices	Equity – Leveraged Equities	Commodity – Commodities
3	Software – Application	Motion picture and video production	Equity – Technology Equities	Bond – Preferred Stock/Convertible Bonds
4	Internet Retail	REIT – Hotel & Motel	Commodity – Precious Metals	Commodity – Agricultural Commodities
5	Auto Manufacturers	Custom computer programming services	Equity – All Cap Equities	Bond – Leveraged Bonds
6	Credit Services	Home Improvement Retail	Equity – Materials	Equity – Industrials Equities
7	Internet Content & Information	Travel Services	Equity – Alternative Energy Equities	Equity – Latin America Equities
8	Diagnostics & Research	Packaged Foods	Equity – Small Cap Growth Equities	Equity – Transportation Equities
9	Semiconductors	Metal Mining	Equity – Health & Biotech Equities	Bond – Inflation-Protected Bonds
10	Drug Manufacturers – General	Medicinal and botanicals	Volatility – Leveraged Volatility	Bond – National Munis
11	Aerospace & Defense	Pharmaceutical Retailers	Equity – Energy Equities	Equity – MLPs
12	Conglomerates	Trucking	Equity – Industrials Equities	Equity – Emerging Markets Equities
13	Software – Infrastructure	Medical Care Facilities	Equity – Financials Equities	Equity – Energy Equities
14	Electrical Equipment & Parts	Packaging & Containers	Equity – Small Cap Blend Equities	Equity – Foreign Large Cap Equities
15	Consumer Electronics	Airlines	Equity – Asia Pacific Equities	Equity – Inverse Equities
16	Entertainment	Integrated Freight & Logistics	Volatility – Volatility	Equity – Small Cap Value Equities
17	Oil & Gas E&P	Oil & Gas Drilling	Equity – Large Cap Blend Equities	Commodity – Metals
18	Specialty Retail	Insurance – Property & Casualty	Bond – Government Bonds	Commodity – Leveraged Commodities
19	Packaged Foods	Department Stores	Equity – China Equities	Equity – Europe Equities
20	Specialty Industrial Machinery	REIT – Residential	Commodity – Oil & Gas	Equity – 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.

-InvestingChannel

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.