Almost three weeks ago on April 23rd, I published an article: Should I Buy Stocks Developing A Vaccine Now? Let us now revisit those plays and see where they stand now.
Eight stocks, six being pharmaceutical companies were chosen of which six are showing good profit. Whether you allocate a few thousand GBP or a few million GBP, the diversified approach of picking up an equal allocation in each stocks would have worked very well.
Taking into account dividend payments, Amgen AMGN is up 3%, Moderna MRNA up 28%, Gilead Sciences GILD -6%, Pfizer PFE up 3%, GlaxoSmithKline GSK -1.5%, Regeneron REGN +1.5%. Equities in the other sector also performed well where IG Group IGG is up 4.5% and Plus500 PLUS is up 5.8%.
The aggregate gain is 38% for a three week hold, with an average gain of 6.5% per holding.The majority of any profits should certainly be taken off the table. Leaving some on with a heightened stop loss is a good strategy for the opportunity to capture further potential gains.
Market volatility remains high, currently trading at 34. We have witnessed a slight decrease however as it was averaging around the 40 level towards the end of last month. Trade size should still be dropped and stop losses widened to combat the prevailing market conditions. We are expecting the major indices to continue to test lower for a W-shaped recovery. US Crude Oil is currently trading at 28.30, well off the lows weeks ago. This could test lower but ultimately in three months should be higher and in six months significantly higher.
The Morning Note wis now in full swing. For those who have still not signed up for this, you can send a quick email to support@analystonlineuk.com stating that you want the Morning Note. This week it has already resulted in some good plays notably a long suggested on GOLD from 1704 on Monday. This is currently trading at 1732!
We managed a return of 70% in 2019 for our PREMIUM service using fairly low leverage. Further performance details can be seen here: Annual Return. Too busy to trade? Further details of our Managed Account Service.