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Stocks dip while BTC & gold soar 📈
Premarket Report
Chris Dinello
December 04, 2023
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
Happy Monday! I hope you have a great day in the market.
Now, let's get ready to trade!
Markets 📈
Stocks closed out last week on high note after notching solid gains on Friday. The Dow gained 0.8%, while the S&P 500 and Nasdaq tied with a half-point advance. The small-cap Russell 2K broke out for a 2.9% rally.
Today, futures are down in early trading. S&P 500 contracts are showing a 0.3% loss.
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Premarket Highlights 🔎
🎢 Stocks Take a Breather While Gold & Bitcoin Rally
Stocks are on pace to take a step back in today’s session, but gold and Bitcoin are booming.
Bitcoin prices shot up to around $40K over the weekend, and they’re still holding strong near that level. Meanwhile, gold continues to hover around the new record high that is set last week.
What Does It Mean?
Stocks have performed well over the past few weeks, and the sudden shuffling could be a sign that the rally is beginning to reach its upper limits.
Some investors are beginning to wonder if the potential risks outweigh the potential rewards at the market’s current valuation, especially given the high interest rate environment and tightening labor market.
What’s Next?
The market could need a catalyst to help it get over the hump, and the most obvious catalyst would be a shift in interest rate policy signalling from the Federal Reserve.
However, we’re not there yet, and, based off Chairman Jerome Powell’s most recent speech, it seems the Fed is content to play things close to the chest so it can keep its options open.
What to Watch Today 👀
Alternate Assets Rally
The sudden gains we’re seeing in gold and Bitcoin could be a red flag for the market. If investor demand is shifting towards other assets, it could take some wind out of the stock market’s sales in the final month of the year.
Personally, I think the momentum from the holiday season and the market’s strong performance in recent quarters will keep the up-trend intact through the end of the year.
Featured Earnings 💲
GitLab [GTLB] ... AM
Science Applications International Corporation [SAIC] ... AM
Fusion Fuel Green [HTOO] ... AM
IDT Corporation [IDT] ... PM
Culp [CULP] ... PM
Economy 🏗
Factory orders [Oct] ... 10:00a
Running Hot 🔥
Gainers
Lucy Scientific [LSDI] >> +83.9%
WiSA Tech [WISA] >> +53.9%
SilverSun Tech [SSNT] >> +97.0%
Decliners
Nova Vision Acquisition [NOVV] >> (59.4%)
Neximmune [NEXI] >> (38.0%)
Garden Stage [GSIW] >> (33.5%)
Hawaiian Holdings [HA] - Last Close: $4.86
Buyout news is shaking up the air travel sector this morning.
Alaska Air Group landed a deal to acquire Hawaiian Airlines parent company for $1.9 billion cash-and-debt deal.
Under the terms of the agreement, HA shareholders of record will get $18 for each share of common stock, for a total equity value of $1 billion.
Alaska will also acquire $900 million of Hawaiian’s net debt.
The deal is expected to close within 18 months, subject to shareholder & regulatory approval,
HA is one of this morning’s top movers with a 182.5% gain with over 3 million shares traded at the time of writing.
My Take: There’s still some upside left between HA’s current price ($13.77) and the deal’s proposed acquisition price of $18. However, the remaining upside could be a sign that the market is skeptical about whether this deal will ultimately pass regulatory muster.
Eyepoint Pharmaceuticals [EYPT] - Last Close: $6.61
Breakthrough drug data is boosting shares of Eyepoint Pharma.
The tiny company said topline results from a Phase 2 DAVIO 2 trial of EYP-1901 for wet AMD met its primary endpoint across both dosing schedules.
Eyepoint said the drug combination therapy also proved relatively safe, with no systemic serious events occurring during the trial.
The trial also met its key secondary endpoints with both doses, including an over 80% reduction in treatment burden, and over 80% receiving only zero or one supplement up to six months.
EYPT is leading the premarket with a 287.7% gain on over 3 million shares traded.
My Take: EYPT’s strong clinical release was an ideal set up for a short squeeze, given the stock’s 17.1% short percentage as of Nov. 15th, and today’s massive gain is likely a result of their efforts. Be careful you don’t get caught holding the bag on the way down.
Alterity Therapeutics [ATHE] - Last Close: $1.66
An upbeat drug update is boosting shares of Alterity Therapeutics.
The biotech firm said ATH434 produced promising results in a primate model study of Parkinson’s disease.
The company presented the encouraging data at the Future of Parkinson’s Conference 2023 in Austin, TX over the weekend.
According to the presentation, the drug produced improved motor performance and general function in monkeys with Parkinson’s disease.
CEO David Stamler said, the data is “exciting because we have shown for the first time that ATH434 can reduce Parkinson’s symptoms in a higher order animal…”
ATH is up 208.4% with 4.6 million shares traded in the premarket.
My Take: ATHE is making a big move, but this all kinda sounds like pie in the sky. An effective Parkinson’s drug for humans is still a long way away, and I’m not sure this rally will have legs.
Bit Brother [BETS] - Last Close: $0.0388
Bit Brother is getting a boost from the recent Bitcoin boom.
The China-based Bitcoin miner is rallying after the benchmark crypto skyrocketed to $40,000 apiece over the weekend.
Bit Brother also rallied on Friday, after it announced the purchase of 3,300 new Antminer S19 units to expand its BTC mining operation.
Shares jumped 43.1% on Friday following the announcement, but Bitcoin’s weekend rally kicked the move into overdrive.
BETS is one of this morning’s top stocks with a 105.6% gain on 185 million shares traded in the premarket.
My Take: BETS is off to the races, but this trade isn’t for the faint of heart. Expect a wild ride in this stock, especially if BTC prices fluctuate.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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