First October blog

The new month saw a bearish trend from BofA Merrill, which called European stocks overpriced and a bullish one from other analysts who cheered on Merck up nearly 10% on its success with a new covid-19 medicine. Other drug firms like ZymeworksRocheCompugen also rose. BioNTech however was sold off after it announced that its BNT 122 MRNA post-surgery drug for colorectal cancer is in phase 2-3 trials. I cannot explain why. Organon, the spinoff, fell 0.14% after it was rated hold by CFRA.

Japan went the way of Europe after its success in Sept. with a generalized correction which took down Nintendo and Fanuc. NTDOY also was sold off by Cathie Woods who has a following, and was down 5.65%.

Some gainers included NIO which thanks to its new Norwegian presence delivered 10,628 vehicles last month, up 126% y/y and also beating forecasts. Other winners were mostly from the oil patch: BP, Royal Dutch Shell, Azure Power, Earthstone Energy (ESTE)  and Canadian Solar which recovered today. However UUUU, volatile Energy Fuels, lost 0.85%

Gold is up again.

Canadian Nutrien was given a new higher TP for Q3, at $1.189 (US) and rose 2.7% to $64.83, a pe ratio of  38.36. For me that is near a sell signal. Sure food prices are rising but the hike will limit how much people will buy.

Fund managers like Lazard, LAZ, and Sweden's Investor, IVSBF were buoyant as were country funds like Ireland (I am not sure if either counts as part of Europe to Merrill but I think they are there.) Banco Latino (BLX) gained 1.6% to $17.54.

A lot of these moves are simply reactions to last month's excesses and they may not be predictive for October at all.

I am again having trouble with my desktop computer, AKA the clunker as it expects a password which I did not set as it is immobile. I hope my star wars consultant Kelvan will be able to help again, but he may have gone into outer space himself. He can override password demands but I don't know how he does it.

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