30Jun11:27 amEST

Blending In, Only to Resurface

Although equities as a whole remain remarkably unperturbed by various economic re-shutdowns across the country it is interesting to see the virus-related stocks resurface after a quiet couple of weeks. Whether it is a testing play like OPK, a vaccine name like MRNA, or meal kit delivery like APRN the complex of virus stocks is not signaling the trade is over, just yet, or perhaps even close to being over. 

Blue Apron, the meal kit delivery service, is one example of a "snake in the grass" virus-related play. Before the pandemic and lockdowns the stock was near penny levels amid swirling rumors that bankruptcy or de-listing could come sooner than later. Of course, the pandemic and lockdowns gave the stock new life. 

However, the interesting aspect about APRN, seen on the daily chart, below, is that the name did not go roundtrip at all to pre-pandemic levels--The chart merely marked time sideways in a rather calm manner, essentially like that snake in the grass. This is truly remarkable given that APRN is a highly-shorted stock with a low float and plenty of haters who think the company is a joke. To see this sort of compression after the prior run-up is noteworthy, in other words.

Today, APRN is one of several virus stocks back at it again and threatening a new leg higher. I am curious to see if this move has legs, as I think so many traders expected as much in recent months and were burned that this one may be the true secondary move. 

Another bright spot for the virus names today is that INO is down 10% as I write this and has been a uniquely hot stock the last few weeks. But the rest of the virus stocks are not falling apart in sympathy. Instead, they are trying to pick up the slack and follow the leader's latest move higher. 

Stock Market Recap 06/29/20 ... Headed to the Boat This Summ...


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