5 hidden ASX companies surged today while the market was down

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

The ASX 200 opened 1.5% lower this morning as investors reacted to global fears; as Chinese markets fell 9% at open and the Coronavirus continues to spread across China. The Australian transport industry was mildly hit this morning with QAN opening 3.8% lower.  However, QAN recovered closing near it’s friday closing price of $6.44. It was the same story for Sydney Airport, opening 4% lower and since recovering. The up and coming Bio-tech company PAR also opened 21 cents short of it’s trading price. Possibly allowing a nice entry under $4 for those able to get in. However, some companies were up this morning including:

  1. Pro Medicus Limited ASX: PME – PME, rising IT solutions company, rose by 7% today. Despite the spike, PME is still recoveing from a steady decline. Presenting investors with a possible entry point. With PME being one of the biggest movers today, they are defitnely one to watch as volume begins to pick up.
  2. Service Stream Limited ASX: SSM – SSM, a company providing essential network services, also surged by 7% today. On the back of no news SSM appears speculative. Espeically as SSM are 0.30 cents lower then its $3.02 high in August 2019. 
  3. Avita Medical Ltd ASX: AVH :  AVH, skin repair company, increased around 9%. Avita’s growth is backed by impressive financials,recent FDA approval and potential growth in the USA markets. Avita are up 400% YTD, making the biotech a must on your watchlist.
  4. Evolution Mining Ltd ASX: EVN : EVN only jumped by 1.46%. The low increase appears to be driven by possible speccing from investors. A move to Gold is common as a market dips. From my research I have found no substantial recent internal news that would drive up the share price.
  5. Northern Star Resources Ltd ASX: NST : NST is up 2.46% from Friday’s closing. Gold prices have surged, causing Mining companies such as NST to be specced. The northerly trend may last for weeks as the Coronavirus shakes the market.  However the markets do remain unpredictable

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support.

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Tyger Fitzpatrick and Patrick McLoughlin.

 

 

Coronavirus driving markets down – providing market opportunists a nice entry price

Global fears in recent months have been very short lived – such as the conflict between USA and Iran and now what we know as the Corona virus outbreak. As we mention time and time again, what makes a successful investor is their ability to hold through troughs and furthermore buy when the markets are down. It all comes down to Warren Buffet’s quote that it is wise to be “Fearful when others are greedy and greedy when others are fearful”. This can be directly related to the current state of global markets, constant fear affecting investors decisions.

Another market overreaction?

The current state of the Corona-virus is ongoing, so we cannot predict the total outcome of the virus. However, looking back on history we can determine how we have handled cases like this before.

  • Past contagious breakouts have been controlled – breakouts such as the 2003 SARS epidemic as well as the Ebola scare have all been controlled with strict procedures and quarantine laws.
  • Breakout located in a Chinese city of 60 million – compared to China’s total population of 1.4 billion.
  • Economy will only be affected in the short term, as procedures are in place to minimise the short term danger of the virus.
  • Social media inflating the situation with an undertone of fear.

Let’s talk opportunities

In the past week, US 10 year bonds fell 8%, a telltale sign of global speculation as news of the virus becoming worse spread through social media. Many investors have seen red losses in their portfolio this week as the market tumbles from a record high early January.  In behavioural economics, as people begin to feel the losses they begin to sell off their ownership to avert a further loss. This is called loss aversion. Loss aversion plays a huge role in creating more fear and driving the markets and economy into the ground. As a long term investor, you will experience both short term losses and gains however you will aim to be less emotionally attatched from your stock and therefore systematic risk like a virus spreading should not be a huge factor. Developing this attribute as a young investor in my opinion, is one of the most important aspects of becoming a new,succesful investor.

Possible ASX Opportunities

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support.  

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.  

Written by Tyger Fitzpatrick, founder by YIG.

Can you make money trading off Trump’s tweets alone?

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

There is no doubt Trump has made a name for himself as the 45th President of the United States. Only 3 of these Presidents have been impeached in the history of the United States and of these three, only one has been able to move the market so significantly with a Twitter account. It is quite remarkable to see social media making a significant impact on the Global markets with more and more people around the globe becoming immediately connected with one another.

As we progress into this technological era of social media, one must note that the market will continue to become more volatile. Becoming an investor now only requires a phone and some funds, therefore allowing the “everyday” investor to enter the market. Alongside this, the increased use of AI and programmed systems has created a market that reacts to news both fast and dramatically.

Trump’s tweets alone have the ability to shift the market a certain way, to the point where a recent study posted by CNBC said “On days when President Trump tweets a lot, the stock market falls”. The market acts this way to pure speculation alongside AI that uses frequency and key phrases in his sentences to either buy,sell, short or long ect. Trump’s activity on Twitter has since been coined by JP Morgan as the Volfefe Index. This index examination found that the key phrases used in Trump’s tweets such as “billion”, “great” and “China” were the strongest market movers especially affecting the price on 2-5 year Treasury Bonds. If you don’t know the importance of bonds and how they are priced there is more information here. These bonds will either increase or decrease price due to volatility or speculation on the country that is issuing this debt.

Now being realistic, a good investor such as Warren Buffet would not react to speculative news or in that matter even care. A long term investor will make calculated risk based on a set formula whether that consistency in financials or it’s internal performance. Some investors however trade within the day to make a small return, this is a risky game. Only experienced and highly skilled investors will make money trading on a daily basis due to pure speculation and the high levels of risk involved. So could you actually make money off Trump’s tweets?

Unless you could buy/sell within 2-3 seconds of Trump tweeting you would miss the gap. 2-3 seconds is generally the time it takes for an algorithm to buy/sell a financial instrument, therefore without an algorithm it would be too risky and physically impossible to set up a trade that quick. If however, you could build an algorithm effectively, who’s not to say you could have been already filthy rich! I highly recommend checking out the Volfefe Index by JP Morgan as it has some very fascinating data on the behaviour of these algorithms.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Tyger Fitzpatrick, founder of YIG.