#95 | All eyes on VIX | Ozempic's Impact on Market | BUY SELL HOLD with TMDX | NETFLIX | Next Week Earnings |
Oct 14, 2023
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AviNMash, JoeySolitro, and StockSavvyShay discuss global issues, the impact of the VIX, potential rise in health-related stocks due to Ozempic, the potential impact of AI on healthcare, and the global situation's impact on Taiwan Semiconductor. They also cover investment opportunities, successful indicators, and shout outs to sponsors.
The market is facing technical resistance at the 200-day moving average and potential resistance points at 4460 and 4200, with fear evident in the increasing VIX.
Healthcare sector dynamics are shifting, with the emergence of new-age defense stocks and the popularity of certain drugs and treatments, such as peptide drug Waygo Vio for weight loss.
Deep dives
Technical Resistance and Headwinds for the Market
There is technical resistance in the market currently, with the 200-day moving average acting as a potential barrier. The speaker suggests that the market could face resistance between the current level and 4460, with another significant resistance point near 4200. However, the market also faces headwinds, including the possibility of future interest rate hikes and the uncertainty surrounding core CPI. Despite these factors, the market remains uncertain, with fear evident in the increasing VIX.
Impact of Fear and Control Selling
There is a high level of fear in the market, as indicated by the VIX surging 25% and going above 20. The controlled selling observed in the market has been characterized by a slow decline, particularly in the S&P, which is approaching the 4200 level. The speaker notes that the market is eagerly awaiting positive news during earning season to counterbalance the ongoing noise and uncertainties, especially with the geopolitical tensions. Certain stocks, such as CrowdStrike and cybersecurity firms, have shown relative strength amid the chaos.
Changing Dynamics in the Healthcare Industry
The healthcare sector is witnessing significant shifts in dynamics. The speaker identifies the emergence of new-age defense stocks, such as CrowdStrike and Palantir, which have shown resilience and benefited during times of geopolitical turmoil. Additionally, the speaker highlights the increasing popularity of certain drugs and treatments, such as the peptide drug, Waygo Vio, for weight loss, and the potential impact of online availability of these drugs. Fertility benefits and advances in AI diagnostics are also discussed as factors affecting the healthcare industry.
Challenges and Opportunities for Trans Medics
Trans Medics, a company focused on increasing the utilization of organs for transplantation, is facing near-term headwinds. The aviation company acquisition, aimed at enhancing their end-to-end organ transplant solution, has raised concerns and led to additional cash burn. However, the long-term prospects for Trans Medics remain promising, with a projected aim to reach 10,000 organs by 2027. The speaker highlights the company's dominant market share, triple-digit growth rates, and potential for future revenue growth. Despite short-term challenges, Trans Medics is considered undervalued and holds significant potential.
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