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Afternoon Note

Efforts to Turn the Tide

By Charles Payne, CEO & Principal Analyst
3/18/2020 1:23 PM

Although the market has been under pressure all day, I like the way the it is acting.  Buyers emerged before the decline could trip circuit breakers. Even though the early efforts to turn the tide didn’t seduce more buyers, it’s a change from prior sessions. 

A wider range of names are higher, including shares of companies in consumer staples, drug stores and video games.  There are other coronavirus ideas higher as well, but some were too gimmicky and too small to influence board market.

As stocks mark time, after opening lower, there are reports New York City has crossed 1,000 confirmed cases of coronavirus and the US Navy is sending in the USNH Comfort hospital ship to assist.

Image result for usns comfort

Watching stock action for signs of what investors want or expect took us to MongoDB (MDB), which traded lower after posting earnings after the close.  But it reversed today with guidance that looked beyond current coronavirus crisis.

“Given the attractive long-term opportunity we have in front of us, we think it continues to be important and appropriate to keep investing in these high-return areas.”

“While we expect to see an impact to our business from the COVID-19 situation in the short term, we remain committed to strong execution in order to capture our long-term market opportunity.”

MDB Management

The last hour of trading is where the bottom has been falling out.  Without any specifics on the administration’s plan to curb the impact of shutting down the nation, some air came out of the balloon of hope. 

It’s hard to believe, but there are very intriguing and more encouraging signs and actions today.

The market is down 1900 points and you like the way it is acting?! You must be way short.

Gordon Warren on 3/18/2020 1:50:01 PM
watching beneath the surface very closely and see certain names that are very intriguing.  There are sectors like energy and financials I'm not going to try to force the issue on although there will be sessions when they spike higher than the rest of the market the same with occasional pop in cruise ships - but there are other areas and names worth putting high on your potential buy list. 

Charles Payne on 3/18/2020 1:56:15 PM
Why does the price of gold continue to decrease? Usually when the market is down gold is up

Kay yokas on 3/18/2020 2:11:52 PM
Why does the price of gold continue to fall? Usually when the markets down gold is up

Kay yokas on 3/18/2020 2:13:53 PM
even bonds are acting weird..no consistent direction with or against stocks....

jimmy on 3/18/2020 2:27:01 PM
Hi, what do you recommend for people with a 401k? with the way the market is falling should we still ride it out, or move to safer stable funds?

Joe Kolodi on 3/18/2020 3:02:57 PM
Joe, that is a great question and brings up so many things that frustrate me with 401K programs at most businesses.  The options are limited (yes, they have a lot of different names but own the same stocks) limiting your upside.  Yes, you absolutely should be contributing in my opinion but also consider doing some independent investing beyond the 401K.  CP

Charles Payne on 3/18/2020 3:06:24 PM
Charles miss you on Making Money did we miss something?

carol scribner on 3/18/2020 3:09:40 PM

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