June 24, 2019
State of the Markets
What a week for the U.S. stock markets! The Dow Jones, S&P 500, and NASDAQ gained at least 2.2%, while Treasury yields were down around 2%. Not to mention Gold, which has been absolutely booming lately; the recent rally has pushed Gold up and over $1,400 for the first time in almost 7 years.
Let us not forget about Oil as well, up almost 9% this week alone, as disasters in Iran escalated supply.
Even with the tremendous amount of gains made from the U.S. markets this month, (DOW on pace for the best June in almost 80 years) the recent craze has been focused on Cryptocurrency. Bitcoin surpassed the $10,000 mark this week, backed by momentum of Facebook’s ($FB) release of Libra, the company’s own cryptocurrency. We all know how volatile Bitcoin (as well as other cryptos) can be, but the recent upward trend action is nothing short of parabolic. Looking at futures now, Bitcoin is up another ~+4.5%, a common trend seen in recent weeks.
Be ready for another volatile (and exciting) week ahead, as investors are still bullish after the Feds hinted at rate cuts this summer.
Stocks To Watch This Week
Overstock.com, Inc. ($OSTK) is a Catalog & Mail Order company in the Services sector. This low-float stock went absolutely parabolic late in Friday’s trading session, after the company announced that there is acquisition interest (retail business) from multiple companies. The CEO stated that it is likely they sell, so the company can focus on cryptocurrency (blockchain) to further expand their business. Although this news isn’t overly tangible, the low share float and extremely high short float make this a nice technical setup. I plan to day trade this over the $11.92 critical resistance level!
Palatin Technologies, Inc. ($PTN) is a Diagnostic Substances company in the Healthcare sector. This higher share float penny stock gapped up Friday evening during after-hours trading, on news of receiving a $60 million milestone payment from AMAG Pharmaceuticals (see below). The payment is attributable to an FDA approval of AMAG Pharmaceuticals new drug Vylessi, which Palatin has a North American licensing agreement with. I expect this to run in sympathy with $AMAG on Monday, even with the higher share float. I plan to day trade this over the $2.21 critical resistance level as momentum continues into Monday morning!
AMAG Pharmaceuticals, Inc. ($AMAG) is a Biotechnology company in the Healthcare sector. This low float penny stock received a positive news catalyst on Friday evening, an FDA approval of their new drug Vylessi (boosting sexual desire in women). As mentioned above, Palatin Technologies is in sympathy with this due to their licensing agreement. This stock has an incredibly high short float, making this prime for day trading. I plan to dip buy this at the $9.45 critical support level, which was tested three different times on Friday. This also has potential for a technical breakout over its after-hours high of day!
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