Want a stock that might be immune to the CoronaVirus? (February 26, 2020)
GSX SPY GSX
This is Scott with your Chart of the Day. I want to take a look at GSX Techedu Inc ( NYSE: GSX ) and for whatever reason, this Chinese education company seems to be immune from the Coronavirus, at least the effects that the Coronavirus is having on the market.
On a day when the S&P 500 ( NYSEARCA: SPY ) opens up 10 points lower. GSX ( NYSE: GSX ) here on Monday moved upwards almost 12 percent. Now, the next day a short seller released a report about the company and the stock barely flinched. It did drop down but it found support at the ADM and then ran back up. Most times if you see a short seller releasing a report the stock gets crushed; GSX ( NYSE: GSX ) did not.
I want you to keep an eye on this stock for potential day trading opportunities. I took this as a day trade today, I didn’t get the whole move but I got about 5 percent. And on a day when the S&P 500 ( NYSEARCA: SPY ) looks like this, GSX ( NYSE: GSX ) is looking pretty darn good. Now, what you want to do is trade this on a short-term time frame, potentially a 10-minute time frame. Watch for it to print a 10-minute green bar, use that green bar to define your risk and just ride it until it bucks you off.
This may not work every time but here’s what like about this: I like the fact that the entire time that the market has been in turmoil, thanks to CNBC, this stock has been riding that daily 8-day exponential period moving average and if it closes below it quickly recaptures it. So you would only want to be in this stock if it works for you. I definitely wouldn’t let this go against me because you are only looking at this for a day trade, especially in this market.
So keep an eye on GSX ( NYSE: GSX ) for potential day trading opportunities. Who knows, you might get a couple percent here or there.
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