The stock market rallied sharply on Monday after strong gains Thursday and Friday. Volume was average, but breadth improved markedly especially for the Nasdaq with (+7:1 UP VOL) for the session. This proce action yielded tons of bullish candidates from the biotech, bitcoin and semiconductor industry groups. The Nasdaq (+1.5%) and S&P 500 (+0.9%) printed new all-time highs.
Summary
Energy going into weekend remained the weakest sector. That all changed on Monday, with a broad-based rally in oil and gas stocks. At the New York Mercantile Exchange, U.S. crude oil futures settled at $65.64 a barrel, up 5.6%, after seven straight declines (-13% from recent highs).
Watchlist – Top 5
These top 5 candidates from the watchlist illustrate the strength in biotechs with NVAX (+8.71%) and BNTX (+9.58%). Pfizer and Biontech received FDA approval for its “two-dose” Covid-19 vaccine. Additional stocks, not shown herein, hail from the bitcoin/blockchain and semiconductor industry groups. More than 90% of the watchlist closed higher on Monday.
| BNTX – BioNTech SE | 382.10 | 33.42 | 9.58 |
| NVAX – Novavax, Inc. | 251.00 | 20.11 | 8.71 |
| SPT – Sprout Social Inc | 111.03 | 6.61 | 6.33 |
| NVDA – NVIDIA Corp. | 219.58 | 11.42 | 5.49 |
| FCX – Freeport-McMoRan, Inc. | 34.20 | 1.40 | 4.27 |
Healthcare and Biotechs
Biotechs showed strength on Monday with the usual suspects trading higher again this morning. BNTX (+3.90%), NVAX ((+0.79%), ILMN (0.96%) and MRNA (+0.61%). Click to enlarge charts.
BNTX is pushing off a 5 day consolidation, while NVAX is attempting a breakout to fresh 52-week highs. Weekly highs are marked at (339 +/-).
Bitcoin and Blockchain
Bitcoin and blockchain stocks are pushing higher in early trading with COIN (+1.13%) MARA (+1.20%) RIOT (+1.18%) as Bitcon rallied above 50,000 on Monday. Bitcoin has been building a series of higher highs and higher lows after breaking out of a 12-week consolidatoin during the summer.
This morning price action is easing, backing into the 49,250 (+/-) zone of support.
Click to enlarge chart.
Resistance levels are noted with horizontal dashed lines.
Join us today in the trading room for our LIVE broadcast during market hours, as we navigate the current environment. We’ll probably focus on early strength in crude oil and energy stocks. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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