The Wuhan coronavirus outbreak is news we need to pay attention to right now.
At StocksToTrade Pro, we talk a lot about how critical it is to stay up to date. News can affect the stock market — either as a whole or just certain stocks and sectors. It’s one way you can prepare yourself for smarter trading.
As of this writing, China reports that the death toll from the deadly coronavirus has jumped to 106. And its total confirmed cases nationwide rose to 4,500.
And the disease has even reached the U.S. with a fifth confirmed case.
Table of Contents
- 1 Keep It in Perspective
- 2 How Will the New Coronavirus Affect the Market as a Whole?
- 3 Negative Effects of the Coronavirus Threat
- 4 Wuhan Coronavirus Stocks to Watch
- 4.1 NanoViricides (AMEX: NNVC)
- 4.2 Inovio Pharmaceuticals Inc. (NASDAQ: INO)
- 4.3 Co-Diagnostics Inc. (NASDAQ: CODX)
- 4.4 Novavax Inc (NASDAQ: NVAX)
- 4.5 Vaxart Inc. (NASDAQ: VXRT)
- 4.6 BioCryst Pharmaceuticals Inc. (BCRX: NASDAQ)
- 4.7 Moderna Inc. (NASDAQ: MRNA)
- 4.8 Lakeland Industries Inc. (NASDAQ: LAKE)
- 4.9 Aethlon Medical Inc. (NASDAQ: AEMD)
- 4.10 iBio Inc. (NASDAQ: IBIO)
- 4.11 Lianluo Smart Limited (NASDAQ: LLIT)
- 4.12 China Pharma Holdings Inc. (AMEX: CPHI)
- 4.13 Allied Healthcare Products Inc. (NASDAQ: AHPI)
- 4.14 AIM ImmunoTech Inc. (AMEX: AIM)
- 4.15 Oncolytics Biotech Inc. (NASDAQ: ONCY)
- 4.16 Cerus Corporation (NASDAQ: CERS)
- 4.17 Cocrystal Pharma Inc. (NASDAQ: COCP)
- 4.18 Cel-Sci Corporation (AMEX: CVM)
- 4.19 Neurotrope Inc. (NASDAQ: NTRP)
- 4.20 Altimmune Inc. (NASDAQ: ALT)
- 4.21 ImmuCell Corporation (NASDAQ: ICCC)
- 5 Conclusion
- 6 One Platform. One System. Every Tool
Keep It in Perspective
Now, I’m not big on fearmongering. The mainstream media, however, seems to love it. Gotta get those clicks, right?
Remember, there’s a lot of information we don’t have yet … And the Center for Disease Control and Prevention (CDC) states that although there are confirmed cases in the U.S., it isn’t spreading.
That said, a lot of people are worried about this new coronavirus threat. And some are feeling the direct impact…
Beijing quarantined 18 major cities, essentially locking down more than 56 million people.
All that worry and uncertainty can affect the stock market. And that can mean more movement … and opportunities. So how do you prepare?
You gotta remember to keep your emotions in check. Fear can lead to poor decisions. It can warp your trading perspective. You want to stay calm and collected as a trader. Here are a few things to keep in mind…
The market’s been in a strong uptrend for the past few years. It’s important to be aware of the long-term trend when you make trading decisions. Many analysts believe we’re overdue for a correction. But the market’s still very bullish.
The market’s proven to be pretty resilient so far. Even after the news of the Iran attack on U.S. bases earlier this month, the market only had a small dip. And then it went on to hit all-time highs.
I’m not saying the coronavirus threat won’t cause the big drop many have long expected … But in my opinion, the damage will likely need to be a worse (and go on for much longer) to cause a big decline.
Now let’s look at upcoming possibilities — both bad and good.
The coronavirus threat can affect some stocks negatively — be careful going long on these stocks. Let’s look at a few examples…
The Walt Disney Company (NYSE: DIS) was forced to close its Shanghai park in reaction to the disease. That was during Chinese New Year — a peak travel time in China. That could be a blow to Disney’s China operations. It might even affect its next earnings report.
Travel fears may mean that airline stocks could take a hit. American Airlines Group (NASDAQ: AAL) and United Airlines Holdings Inc (NASDAQ: UAL) both dropped in price after the second confirmed case of the coronavirus was detected in the U.S.
On the other side of the coin, some stocks may benefit from the outbreak. Already, we’ve seen a surge in certain stocks…
What’s key is that you continue to watch and track sector moves. If the threat intensifies, it’s possible that this niche could turn into a hot sector. Smart traders know to prepare. And hot sectors can make for awesome momentum and great trading opportunities.
Let’s look at a few stocks that may be worth watching in the coming week.
[**Stock charts and prices current at time of writing. These stocks can be volatile and move fast. Always do your research before you make a trade.]
NanoViricides (AMEX: NNVC)
NanoViricides is a biotech stock that’s related to the coronavirus. It looks to be one of the sector leaders so far. Whether the company can actually find a cure is up in the air … But the stock jumped over 150% last Tuesday due to the hysteria.
Inovio Pharmaceuticals Inc. (NASDAQ: INO)
Last week, Inovio announced plans to develop nontraditional vaccines against the latest strain of the coronavirus. It has the potential to produce an effective vaccine candidate in a matter of weeks. Volume and share price has been increasing in response.
Co-Diagnostics Inc. (NASDAQ: CODX)
CODX jumped in price after announcing it was preparing a screening test for the disease.
Novavax Inc (NASDAQ: NVAX)
Novavax is another company that announced plans to develop nontraditional vaccines against the disease. They also announced that they’ve initiated the development of an anti-2019-nCoV virus product using its nanoparticle technology and proprietary adjuvant Matrix-M.
Vaxart Inc. (NASDAQ: VXRT)
Vaxart is a biotech based in San Francisco. The company’s considering turning its oral vaccine platform toward the disease. Even though there’s no official decision, this low-priced stock has already seen increased volume and pricing.
BioCryst Pharmaceuticals Inc. (BCRX: NASDAQ)
BioCryst Pharmaceuticals has been evaluating an experimental drug in a Phase 1 clinical study. It’s demonstrated promising potential in fighting several families of viruses, including coronaviruses.
Moderna Inc. (NASDAQ: MRNA)
MRNA announced a new collaboration to develop a vaccine against 2019-nCoV. Under the terms of the agreement, Moderna will manufacture an mRNA vaccine, which the Coalition for Epidemic Preparedness Innovations (CEPI) will fund.
Lakeland Industries Inc. (NASDAQ: LAKE)
Lakeland Industries is a normally thinly traded stock that’s seen increased activity and pricing in the past week. It makes disposable protective clothing such as clean-room suits and infection-control gear. It also manufactures the air-filtration face masks that have become a more common sight in airports.
Aethlon Medical Inc. (NASDAQ: AEMD)
Aethlon is developing a hemopurifier that treats viral infections. The product boosts immune defenses by capturing otherwise poorly-detected circulating viruses.
iBio Inc. (NASDAQ: IBIO)
iBio is a very low-priced biotech stock that could turn into a coronavirus sympathy play.
Lianluo Smart Limited (NASDAQ: LLIT)
LLIT is a company that provides smart services and products for the medical industry in China. It’s a lower-priced stock with a relatively low float. It jumped in price Monday due to the scare.
China Pharma Holdings Inc. (AMEX: CPHI)
CPHI is a drug manufacturing company located in China. It’s another low-priced stock with a relatively low float. This one could turn into a sympathy play.
Allied Healthcare Products Inc. (NASDAQ: AHPI)
AHPI is a St. Louis–based company that makes emergency medical supplies and respiratory devices. Part of its product line includes mass casualty ventilation products — that includes battery-powered ventilators and disposable manual bag resuscitators.
The company saw its stock price surge on Friday amid worries of the coronavirus outbreak.
AIM ImmunoTech Inc. (AMEX: AIM)
AIM ImmunoTech is based in Ocala, FL and develops drugs for debilitating disorders. Most of its pipeline focuses on cancer treatments. But it does have a product designed to treat certain viral infections. That may enough for it to be caught in the coronavirus hype.
Oncolytics Biotech Inc. (NASDAQ: ONCY)
This Canadian company is known for developing treatments for deadly viruses as well as cancers.
Cerus Corporation (NASDAQ: CERS)
Cerus is based in California and makes biomedical products focused in the field of blood transfusion safety. CERS recently announced the publication of a study on the inactivation of the MERS coronavirus using its INTERCEPT Blood System.
Cocrystal Pharma Inc. (NASDAQ: COCP)
Cocrystal Pharma is a clinical-stage biotechnology company. Its work is in discovering and developing novel antiviral therapeutics that target the replication machinery of influenza viruses, hepatitis C viruses, and noroviruses.
Cel-Sci Corporation (AMEX: CVM)
CVM is a biotech company from Vienna, VA. It’s engaged in the research and development of cancer treatment. The company focuses on helping the body use its immune system to fight infectious diseases.
Neurotrope Inc. (NASDAQ: NTRP)
Neurotrope is a biopharmaceutical company in New York. It principally focuses on developing a product platform based on a drug candidate called bryostatin, which is in the clinical testing stage.
Altimmune Inc. (NASDAQ: ALT)
Altimmune is a clinical-stage immunotherapeutic biotech company that’s involved in developing products that engage, stimulate, and improve immune responses for the prevention and treatment of diseases.
ImmuCell Corporation (NASDAQ: ICCC)
Some believe this latest coronavirus began when someone in Wuhan, China ate an animal. ImmuCell is a company that operates in the development, acquisition, manufacture, and sale of products that improve the health and productivity of cows for the dairy and beef industries.
If the sector heats up, ICCC could attract zealous traders and investors.
That’s our watchlist of coronavirus stocks to help you prepare in case this sector intensifies.
A few of these companies may have nothing to do directly with the coronavirus. But they can still attract buyers due to the high sector demand. Hot sectors don’t come along often … but when they do, it can mean great opportunities. But only if you’re really ready and prepared.
The last hot sector was in 2017 when weed stocks were all the rage.
Remember, trading is very different than value investing. These aren’t long-term plays. That’s why your research and trading plan are critical. Some of these companies may be struggling without a hot sector catalyst to boost them. And those boosts can definitely be short term.
Trade like a sniper. Do your research. Make sure all the moves line up. Plan your entry and your exit. Take the meat of the move and then get out.
It takes skill to play these setups … Prices can move big and fast. And if you don’t know what you’re doing, you can easily blow up your account.
We talk about how to trade sectors in my mentorship program, StocksToTrade Pro. We create daily watchlists and go over trade plans every morning. We prepare for the markets, network, and learn together. Come join us today and see what you’re missing.
What do you think? How will the coronavirus affect the stock market? Share your comments below.