Stocks to Watch During the Corona Madness
Dear Penny Stock Millionaire,
Are you ready to take advantage of the insane plays happening right now? First, get smart about which sectors are hot. Right now, it’s all about coronavirus stocks and sectors … But some might not be as obvious as you’d think.
Let’s talk about the smartest approach to the market right now and what kinds of coronavirus-related plays are heating up…
They’re not all what you’d expect…
The most obvious coronavirus spikers are related to the actual virus. This includes companies that make products directly related to treatment or prevention. It could also be biotechs potentially working on a vaccine.
Here are a couple of the most recent hot virus stocks…
Decision Diagnostics Corp. (OTCPK: DECN)
This was a first green day OTC runner that had coronavirus test news. It was already up a lot. So I waited and bought a nice little dip off its highs hoping to sell into the close or the next morning.
Here’s the DECN chart from March 11 and 12:
DECN chart: March 11–12, first green day overnight gap up — courtesy of StocksToTrade.com
I held overnight and in spite of the terrible market, it gapped up for a nice 27% win and a $1,350 profit.
The first green day OTC pattern is one of my favorites right now. Check out this video to learn more about it…
iFresh Inc (NASDAQ: IFMK)
This is sort of a crossover coronavirus stock. On one hand, this is a grocery market chain and online grocery store.
On the other hand, it just announced an agreement to acquire 70% of Xiamen DL Medical Technology. Xiamen specializes in R&D of products like protective medical and non-medical masks.
I don’t really care about the company — what I do care about is its price action.
Check out the IFMK three-month chart:
IFMK chart: 3-month, daily candle
Two weeks ago, this stock was trading around 70 cents per share. As of this writing, it’s trading in the low $2s. That made it worthy of a spot on my watchlist. I’d consider this a potential dip buy, ideally a morning panic — but I won’t chase it.
No Borders, Inc. (OTCMKTS: NBDR)
You know how I’m always saying I act like a retired trader? This was a perfect example of a trade good enough to drag me out of retirement.
Take a look at the NBDR March 16 intraday chart:
NBDR chart: March 16 intraday, 1-minute candle,
There was breaking news about this company releasing an at-home coronavirus test, and I knew this was a great opportunity. I bought at $0.025 and sold at $0.051 for a 104% win and $1,295 in profits.
These are just a few examples of recent coronavirus runners.
Or as I call it … the “stuck at home” sector.
This is the less-obvious sector of coronavirus spikers. These stocks aren’t directly related to the actual virus but instead the lifestyle changes due to lockdowns and quarantines.
Suddenly, everyone’s working from home… or out of the job. There’s nowhere to go, and we’re supposed to keep socializing to a minimum. But we still have basic human needs…
We need food (and apparently stockpiles of toilet paper). And our demand for entertainment and comfort during this exceptional time is affecting stock prices.
There’s a definite mix of lifestyle and survival here. But there’s also a common denominator… These stocks are based on everyone being stuck at home for the foreseeable future.
Not all of these are low-priced stocks, so I wouldn’t necessarily trade them. But they can give you ideas about the types of stocks that are spiking right now.
Let’s check out some examples…
Blue Apron Holdings, Inc. (NYSE: APRN)
I’ve talked about red flags with meal-prep delivery service Blue Apron before. But back then, I had no idea that the coronavirus would have us all housebound.
On March 16, Blue Apron was holding steady in the low $2s … But as President Trump warned against gathering in groups of 10 or more … As more bars and restaurants closed … the stock surged.
It closed at $3.95 and opened the next day at $5.50. Then it just kept running.
Here’s the APRN 5-day chart:
APRN chart: 5-day, 1-minute candle
It finally hit a high of $28.84 on March 19.
Campbell’s Soup Company (NYSE: CPB)
Fear abounds in times of uncertainty. People are stocking up on essentials like toilet paper, water … yep, canned food too. Campbell’s Soup isn’t small by any means. But it’s experiencing a lot more volatility than you’d expect from a larger company right now.
If you look at the CPB chart, the growth is notable:
CPB chart: 1-year, daily candle
After holding steady in the $40s since June 2019, the stock started to climb as soon as the coronavirus started getting attention in early 2020. Now, it’s reaching new highs in the $50s.
Could it continue? I can’t answer that. Should you keep an eye on canned food companies? Can’t hurt.
Peloton (NASDAQ: PTON)
Turns out, a controversial commercial isn’t the only thing that can spike Peloton — millions of people being stuck inside their houses will do it too.
Active people who go to the gym and are always on the go are being forced to stay inside. And they’re going stir crazy. Stocks like PTON could go up along with increased interest in at-home fitness options.
At the start of the trading day on March 16, PTON was trading in the $18s. By the end of the day, it was trading at about $22. And it just kept going…
Check out the PTON five-day chart:
PTON chart: 5-day, 1-minute candle
On March 18 PTON made it to the $27s. It could be a sign of a trend for at-home fitness-related stocks.
Waitr Holdings Inc. (NASDAQ: WTRH)
According to its Investor Relations page, this company’s core is a platform that lets people connect to restaurants in “underserved cities in America’s heartland.”
While the heartland might not be a hotspot where bigger services like GrubHub reign supreme, we just entered a pretty exceptional time. Most restaurants are moving to a takeout-only or delivery-only model. Suddenly, companies like this are in demand.
Here’s the WTRH chart from March 16:
WTRH chart: March 16 intraday, 1-minute candle
I entered this stock at 42 cents. But when it didn’t spike as much as I wanted I got out at roughly 44 cents. A nice little profit. As I tend to do, I sold WAY too early — the stock shot up all afternoon and opened the next day at 93 cents.
That’s OK. I’m still happy with this trade because I didn’t get greedy. And it could be a potential re-buy on a dip. Oh, and it didn’t stop there…
Here’s the WTRH 5-day chart:
WTRH chart: 5-day, 1-minute candle,
As you can see, on March 19 the stock hit $4.40 — more than 10 times the price it was on March 16. That shows just how much these stocks can run. Even while the rest of the market gets crushed.
Here’s the final stock in this post. Like APRN, CPB, and PTON, this one isn’t a penny stock. But it’s worth noting as so many people’s lives have shifted to work from home…
Zoom Video Communications, Inc. (NASDAQ: ZM)
Remote workers of the world, unite! With everybody suddenly working from home, stocks like Zoom or Slack (NYSE: WORK) could experience massive growth.
In the case of Zoom, you can see an uptick in stock price as early as January, when the coronavirus hit the public eye. At the beginning of 2020, the stock was recovering from a downtrend in December and trading in the $60s.
Take a look at the ZM six-month chart:
ZM chart: 6-month, daily candle,
By the end of January, it was in the $70s. By mid-February, it was in the $90s. In March, it reached a new high of $132.25.
As of this writing, it’s falling in price. But as more people get their bearings and start working from home, there could be further spikes. Stocks related to remote work could be big in the coming weeks and months.
The Bottom Line
Even though stock market volatility is at an all time high right now, there are still ways for you to capitalize on the markets. You just need to know where to look.
Take this time to study market history, so you can take advantage of some of the great moves that are happening in the market right now.
Editor, Penny Stock Millionaires