Why is the stock market down today? That’s one of the questions being asked by countless investors today. Whether we’re talking about penny stocks or blue-chips, the trend has shaken investors.
Why Are Stocks Down Today?
The Dow & the S&P 500 continued to drop lower as the COVID-19 delta variant impacted Wall Street and retail investors. That’s even in light of India beginning to offer doses of the Moderna (NASDAQ: MRNA) vaccine. Aside from concerns stemming from the Delta variant, inflation has also worried traders.
Comments from President Joe Biden resulted in a mixed response from the market. He explained that his ‘Build Back Better’ plan “will be a force for achieving lower prices for Americans looking ahead,” and that, “If your primary concern right now is inflation, you should be even more enthusiastic about this plan.”
The underlying issue among traders was that the President was addressing inflationary concerns in the first place. This was translated as a sign that he may be worried about rising prices. These comments came a few days after Treasury Secretary Janet Yellen told CNBC that “We will have several more months of rapid inflation, so I’m not saying that this is a one-month phenomenon.”
Pair all of this with rising COVID cases, and it has become the perfect storm for selling pressure to come into the market. So what does this mean for the future? Is this the long-awaited “stock market crash” people have been talking about or is it just a minor correction? On top of this, even with the slide in broader markets, are there any opportunities to take advantage of?
These Stocks Avoided The Market Crash
It wasn’t all bad in the stock market today and “Yes,” there are opportunities out there. In this article, we’ll discuss a few of these high flyers, why they rallied, and how they’re avoiding this stock market crash right now.
Obviously, we mostly discuss penny stocks. But overall, the market’s volatility hasn’t only come from stocks under $5. Here are some of the companies avoiding the latest stock market sell-off:
- MER Telemanagement Solutions Inc. (NASDAQ:MTSL)
- Allied Healthcare Products Inc. (NASDAQ:AHPI)
- Oragenics Inc. (NYSE:OGEN)
- Aethlon Medical Inc. (NASDAQ:AEMD)
- Novavax (NASDAQ: NVAX)
MER Telemanagement Solutions Inc. (NASDAQ:MTSL)
The first on this list of stocks avoiding the market crash is MER Telemanagement Solutions (MTSL Stock Report). Not that long ago, this was one of the penny stocks to watch. However, over the last week, MTSL stock has climbed from under $4 to a high of $8.94.
Why is MTSL stock on the move right now? There was a massive, parabolic move that MER Telemanagement saw late last week. This is where the first explosive move put this on penny stock lists. One problem was that there weren’t any apparent news catalysts to point at. But there has been a constant focus by retail traders on low-priced, lower float penny stocks.
MTSL fits this mold especially in light of having less than 10 million shares outstanding. In many cases, low float penny stocks can see explosive moves up (and down), with volatility becoming a huge driver. The latest rally for MTSL has seen the stock bounce from around $4 to highs of more than $6 on July 19th.
Allied Healthcare Products Inc. (NASDAQ:AHPI)
In a similar fashion to MTSL, Allied Healthcare Products (AHPI Stock Report) shares have experienced their own bout of trading volatility over the past week. While we’re seeing a stock market crash on Monday, AHPI shares climbed over 40% during the session. This is another instance where there are no headlines to point at, but momentum is kicking things into high gear.
With an uptick in virus cases, some companies are gaining steam. Allied Healthcare manufactures a number of products geared toward addressing respiratory issues. Given the rise in coronavirus cases, companies dealing with respiratory issues may have garnered some sympathy sentiment in the stock market today.
Oragenics Inc. (NYSE:OGEN)
This month, Oragenics (OGEN Stock Report) has been relatively quiet in the market. The company is another coronavirus name to keep an eye on. Its lead product is Terra CoV-2. This is Oragenics’ vaccine candidate designed to prevent the virus as well as certain variants.
With virus fears triggering somewhat of a stock market crash today, it’s important to look at the bigger picture. Clearly, companies like Moderna have brought attention to companies that have exposure to the virus. Since Oragenics is actively pursuing a vaccine candidate, OGEN stock seems to be gaining the spotlight today.
Aethlon Medical Inc. (NASDAQ:AEMD)
Shares of Aethlon Medical Inc. (AEMD Stock Report) also caught a strong surge in the market today. One of the key factors traders weighed was concerning – you guessed it – its vaccine platform. The company has been developing a virus test utilizing Aethlon’s hemopurifier. This is the company’s immunotherapeutic device designed to fight against cancer and other life-threatening infections. Now the company has found potential for treating those with SARS-CoV-2.
Last month the FDA approved a supplement to its open Investigational Device Exemption (IDE). This will allow for the testing of the hemopurifier in patients with SARS-CoV-2/COVID-19 in a New Feasibility Study. The study, which will enroll up to 40 patients, will study the efficacy and safety of the device. With fears growing around a new variant, AEMD stock has clearly become part of the growing list of virus stocks to watch right now.
Novavax (NASDAQ: NVAX)
The now-famous former penny stock to watch, Novavax (NVAX Stock Report), is also growing in popularity today. Formerly focused on treating the flu, Novavax’s progress in addressing coronavirus has brought it to the forefront. While this is one of the likely reasons that it’s surging in the stock market today, there are a few other things to keep in mind.
First, technical levels have come to light after NVAX stock tested its 50-day moving average last week. Furthermore, the upcoming August 5th conference call is at the top of mind for many. The company will discuss its second-quarter results and give an operational overview with key highlights. As this date approaches, speculation has begun increasing. Furthermore, the latest attention placed on vaccine stocks certainly hasn’t hurt things in the short term.
Is The Stock Market Going To Crash?
We’ve seen plenty of days where the stock market crashes, according to retail traders. But with the Dow and S&P 500 still trading much higher than they were at the start of 2021, “crash” may not be the right term to use right now. The fact is, volatility is clearly a factor in the stock market. It’s this sharp price movement in stocks that has produced plenty of opportunities to profit. Brad Lineberger, president of Seaside Wealth Management told CNBC recently that investors should “Embrace the volatility because it’s why investors are getting paid to own stocks.”
For active traders, finding where opportunities lie is the key. Right now, thanks to the rise in Delta variant cases, globally, vaccine stocks have begun to ramp up once again. Despite the broader market sell-off, many of these companies have presented plenty of potential for investors right now.