The coronavirus fears have led to one of the fastest market declines in history. In the span of one week, the market has slid nearly 12 percent, hitting correction territory.
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[Trading Tips]
Good morning. The coronavirus fears have led to one of the fastest market declines in history. In the span of one week, the market has slid nearly 12 percent, hitting correction territory.
On a technical basis, things look even worse. Shares have gone from trading over their 50-day moving average to testing the 200-day moving average. We expect the market decline to slow after the recent beating, and start to trade in a range until the fears subside. But if the market closes materially lower from that average, stocks could be in for a painful time.
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MARKETS
DOW 25,766.64 -4.42%
S&P 2,978.76 -4.42%
NASDAQ 8,566.48 -4.61%
*As of market close
⢠Stocks slid in the morning, nearly recovered, then closed at session lows, as the coronavirus scare remained rampant.
⢠Oil prices slid 4.9 percent, closing at $46.34 per barrel.
⢠Gold prices rose 0.2 percent, hitting $1,646 per ounce.
⢠Cryptocurrencies were mixed, with Bitcoin dropping 0.5 percent to $8,784.
Todayâs TOP TIPS
[Two High-Dollar Stocks to Buy Now](
Thereâs a big difference between price and value. A $10,000 stock can be cheap, and a penny stock can be expensive.
Nevertheless, many investors and traders tend to avoid high-priced shares. While it may be difficult to build a position there, many companies with a high price tag still offer a good value.
By buying a few names that have seen a drop lately, investors can set themselves up to continue profiting from these high-priced plays.
» [FULL STORY](
[Insider Trading Report: Sealed Air Corp (SEE)](
Edward Doheny, President and CEO of Sealed Air Corp (SEE), recently picked up 7,500 shares. The buy increased his stake by nearly 3.5 percent to just over 222,780 shares. In total, the pickup cost just over $250,000. This is the second buy from insiders in the past month, following a 15,000 share pickup from a director. Insider data over the past three years shows a number of both insider buys and sells at a variety of price points.
» [FULL STORY](
[Unusual Options Activity: Micron (MU)](
$35 call options with an April expiration on Micron Technology (MU) recently saw a 40-fold rise in volume. The option went from 101 open contracts to over 3,900.
The bet, expiring in 49 days is unusual in that this trade made a deep in-the-money bet. With shares around $54, the option is about $19 in-the-money, and should move dollar-for-dollar with shares.
The trader also paid about $19 to get into the trade, so thereâs nearly no time premium.
» [FULL STORY](
IN OTHER NEWS
⢠[Stocks officially enter correction territory]( at their fastest pace ever.
⢠The [U.S. and U.K. prepare for post-Brexit]( negotiations.
⢠Goldman Sachs warns of [no earnings growth this year.](
⢠[Microsoft leads the tech space in warning]( on the coronavirus impact.
⢠[DoorDash files for its IPO.](
⢠Hudson Bay Company, owner of Saks, [agrees to go private.](
⢠In earnings[, JC Penny beats on sales](, but warns on more store closures ahead.
⢠AB InBev expects a [10 percent decline in profit]( from the coronavirus outbreak.Â
⢠Best Buy tops estimates thanks to [strong holiday sales.](
⢠Paypal warns that the coronavirus could [reduce revenue by 1 percent.](
S&P 500 MOVERS
Â
TOP
PWR 6.311%
APA 2.62%
HBI 1.5%
AOS 1.313%
BWA 1.258%
BOTTOM
FLIR 17.868%
PRGO 14.269%
TSLA 12.815%
CMG 10.828%
HFC 10.061%
Quote of the Day
Our reduced proï¬t forecasts reï¬ect the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, disruption to the supply chain for many US ï¬rms, a slowdown in US economic activity, and elevated business uncertainty.
- Goldman Sachs chief U.S. equity strategist, David Kostin, explaining why the investment bank expects zero corporate growth this year.
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