How Civil Unrest Is Affecting the Stock Market
Dear Penny Stock Millionaire,
Power to the people? Right now, there’s a lot of civil unrest in the U.S. Protests following the death of George Floyd have led to looting and riots …
Fear and uncertainty are at an all-time high. There’s a lot of unknown right now … That means even more market volatility.
We’ve been experiencing a crazy volatile market since March thanks to the coronavirus — it’s seriously unlike anything I’ve ever seen in my 20+ years of trading.
The entire world is volatile right now due to the ongoing pandemic and civil unrest … Let’s take at what’s happening and how it’s creating movement in the market.
What’s Going On?
The current widespread civil unrest in the U.S. was sparked by the death of George Floyd.
On May 25, George Floyd, a 46-year-old black man, was arrested in Minneapolis. A deli employee called 911 to report him for purchasing cigarettes with a counterfeit $20 bill.
Less than 20 minutes after the first squad car arrived, Floyd was pinned beneath three officers, unconscious, and not showing any sign of life.
Videos from onlookers and area security cameras pieced together a horrifying picture of police brutality. Floyd was cuffed, restrained, and unable to breathe, even while he — and onlookers — pleaded for help. “The New York Times” reconstructed the event to demonstrate how quickly it turned fatal.
All of the officers involved in the event were fired. But it wasn’t enough.
What started as a series of peaceful protests quickly escalated into looting and violence in Minneapolis and a slew of other U.S. cities. A lot of cities are under curfew, some are calling in National Guard reinforcements. And at the time of this writing, it’s still going on.
Change Is Necessary.
Black Lives Matter.
That’s not just a tagline. It’s the truth. If you’ve seen my recent Instagram posts, you know my stance. This can’t go on. We have to end police brutality.
What happened to George Floyd is not OK. This is a very scary situation. Change is so necessary.
What can we do?
Well, peaceful protest is a good thing. It can be a great way to inform people and make a statement. But it’s not enough.
Remember Colin Kaepernick? He protested peacefully. He made a statement … But people made fun of him, and he ultimately lost his job.
There needs to be more.
Money Can Be a Catalyst for Change
Love it or hate it, money can make things happen.
As our president proves, you can gain power if you make a lot of money.
I want to do good in the world and create lasting change. For me, money has been the gateway. It’s allowed me to do good through my charity and to donate to Direct Relief during the pandemic.
Why not aim to make some money if you want to change the world? How you spend or donate that money is up to you. And while you think about that, know that…
Civil Unrest Stirs More Volatility
That makes stocks move. What kinds of stocks are moving in the market due to recent events? It probably shouldn’t surprise you that a bunch of runners right now are related to police equipment.
History repeats — police equipment stocks spiked in the past during events involving police-related killings. It’s no different now.
But I’d argue that the stakes are higher because the protests have gone national.
Here are some of the stocks I’ve been watching…
Digital Ally, Inc. (NASDAQ: DGLY)
Digital Ally is a company that creates and manufactures video recording products for police, emergency management, and security.
And guess what? It’s having a big moment right now in the stock market.
On May 31, the daily low was 83 cents. It started spiking premarket, going all the way to $5.20. By the time the market opened, it had already fallen. But then it spiked again in the early trading hours to $2.79.
On June 1, it announced an offering … The stock opened on June 2 with a small bounce but leveled out after that. There’s no way to know how public interest will go, though, and a stock that’s run once can run again … Check out the chart:
DGLY chart: May 29–June 2, 1-minute candle — courtesy of StocksToTrade.com
Genasys Inc. (NASDAQ: GNSS)
Genasys is considered a leader among LRAD (Long Range Acoustic Device) suppliers. LRAD is a communication system for law enforcement for crowd control. It’s being deployed in the riots going on around the country now.
Earlier in May, GNSS was trading in the $3.60s. As protests and riots started breaking out, it hit a high of $5.73 on June 1. It closed at $4.82 on June 2 … I’ll be watching this as a potential play.
Look at the chart over the past month to see how it’s gone up:
GNSS chart: 1-month, 1-day candle — courtesy of StocksToTrade.com
Wrap Technologies Inc. (NASDAQ: WRTC)
Wrap Technologies makes a product called BolaWrap. It’s a non-lethal restraint that shoots out a rope that can wrap around someone from 10–25 feet away. The BolaWrap is kinda crazy, like shooting a spider web.
Not only can this be a safer solution for apprehension, but during the coronavirus pandemic, it could also allow police to keep a safer distance.
On May 31, it was trading in the low $5s. It started to spike late in the day and bounced around on June 1. The stock eventually reached a 52-week high of $8.31.
On June 2, Wrap Technologies was featured on Fox Business Network. The stock spiked again, reaching a new high of $10 before settling in the mid $9s …
The combo of technology and the hot sector made this stock a pick for my June list of Penny Stocks to Watch. Check out the chart action:
WRTC chart: 2-day, 1-minute candle — courtesy of StocksToTrade.com
Vislink Technologies Inc (NASDAQ: VISL)
This communications equipment company makes and sells video transmission products … It’s involved in broadcast and sports, but also government and surveillance. The company has contracts for drone surveillance, which makes it an interesting play right now…
This stock was flatlining in the high $0.20s as of May 31. On June 1, it more than doubled to $0.51 before closing in the mid $0.30s. On June 2, it started to dip, then bounced again to the mid $0.30s. With the rising interest in surveillance-related stocks, this one could come back.
Look at the action over the past five days…
VISL chart: 5-day, 1-minute candle — courtesy of StocksToTrade.com
Dealing With Civil Unrest: Be Better. Do Better.
What’s happening with police brutality and discrimination is not acceptable. As human beings, we must do better.
I’m very sad about the damage that the protests have caused. But I’m even sadder at what’s at the root of it all. And it’s a clear sign that things have to change.
Are you ready to make more of your life, to be able to make things happen, and help make the world a better place? For me, the ability to give back came as a result of my success as a trader. Are you ready to join me?
It all starts with education. Educate yourself on what’s going on in the world. Educate yourself as a trader. Don’t be passive. Become better, then do better.
What do you think about how civil unrest is affecting the market?
Talk to you tomorrow,
Editor, Penny Stock Millionaires