20Apr11:26 amEST

Different Styles But a Common Theme

Tech stocks in the Nasdaq, especially the heavyweights housed in the QQQ ETF, are back at it again this morning staving off any hope for a bloodbath by bears after a soft open. 

Beyond the usual suspects like AMZN NFLX SPCE pushing higher yet, we have various biotech names actively leading the party. Some virus-related names like INO OPK are notably hot, alongside a micro name like NBY's opening surge higher. 

One technical aspect you will find in many virus-related names, be it a meal delivery kit service like APRN or a biotech like VIR, is that they are sporting similar technicals. 

APT is another example of this circumstance, seen below on its daily chart. The protective gear play had its initial spike in February/March like most other virus plays, sold off to shake out the hot money, and then settled into a remarkably tight range ever since. 

These ranges have been forming for over a month now in many cases, with some closer to two months, and may be ripe to probe fresh breakouts as the market may be coming to terms with the notion that this pandemic is going to be a multi-phase event unfolding over the next year or even two years. Recall that there is not guarantee of a vaccine even being created, and that many historical pandemics saw deadly "second waves" not long after it was assumed the first wave would be the worst of it. 

Hence, even as equities display impressive QQQ-generated resilience, it is worth noting that the virus plays are not yet heading into a deep slumber which would imply the worst of the pandemic itself is not behind us. 

Prior Extreme Market Cycles ... Stock Market Recap 04/20/20 ...


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