AlphaSolutions Daily Harvest Portfolio Update.

Updated as of 3/24/2020

As I am sure you are all aware, the markets have seen Extreme Volatility over the last few weeks.  Although there are other contributing factors, the primary cause has likely stemmed from fear-driven selling over the Coronavirus (COVID-19).

In light of recent panic surrounding COVID-19 in relation to the U.S. Markets, we wanted to bring you up to date on some of the actions we have been taking with the Daily Harvest model that you have had some degree of exposure to in your investment portfolio.

1. We have stopped out of a number of Long ETF positions in order to reduce our downside exposure.
2. By selling out of some of our regularly traded leveraged long ETF’s we have reduced that exposure to about 22% which has increased our Cash exposure in order to hedge the remaining long positions.
3. When Markets Trended Out, we started putting on Short Hedge trades to hedge some of our remaining long exposure. These Short positions go up when the markets go down.
   • SPXU = Shorting the S&P 500
   • SQQQ = Shorting the Nasdaq 100
   • TZA = Shorting the Small Cap (Russell 2000)
   • SOXS = Shorting the Semi-Conductors Sector
   • SDOW = Shorting the Dow Jones Industrial Average
   • TBT = Shorting Treasuries
4. We took a position in Gold using UGLD which is often used as a Fear Trade.
5. We want to be cautious with that because there is no real signs of inflation.
6. We have begun using a number of Coronavirus Defense Trades.

What & Why We’re Buying as
Coronavirus Defense Trades.

We have done comprehensive research to determine what individual stocks may be best to buy right now, that are uniquely positioned to potentially profit from the recent outbreak of the Coronavirus.

These stocks can be broken out into a few different categories:

• Biotechnology: Vaccine Research & Development
• Protective Apparel & Infection Control
• General Health Care & Health Care Technologies
• Cleaning & Disinfectant
• Work-From-Home Remote Communications Technology
• Household Supplies

[* indicates updates as of 3/24/2020]

1. Biotechnologies

INO: Inovio Pharmaceuticals, Inc. is a biotechnology company that produces vaccines and immunotherapies, including a vaccine for COVID-19 in phase 2 of testing. Clinical trials begin next month.¹

NVAX: Novavax, Inc. is a biotechnology company researching and developing the vaccines and treatments for various infectious diseases, including COVID-19. Novavax is already on track for Phase 1 of clinical testing in May or June.²

MRNA: Moderna, Inc. researches human biology and develops proteins to prevent, treat, or cure diseases. Their most recently developed treatment for Coronavirus has already been released in its first batch and is being used in Maryland at NIH (National Institute of Health).³

GILD: Gilead Sciences, Inc. is a research and biopharmaceutical company developing and advancing commercial medicine. Gilead Sciences is in Phase 3 of clinical studies for their antiviral drug treatment for Coronavirus.⁴

VIR: Vir Biotechnology is a clinical-stage biotech company, specializing in the treatment and prevention of serious infectious diseases like the Coronavirus. Vir collaborates with pharmaceuticals companies for the development and commercialization of clinically tested therapeutics for anti-viral treatment.⁵

TMO: Thermo Fisher Scientific is a pharmaceutical sciences company providing services to consumers, and equipment/technology solutions for healthcare and life sciences. Thermo Fisher has been making test kits for the COVID-19 consumer use.

LH: LabCorp is a leading global life sciences company developing technologies for diagnosis and treatments of patients worldwide. LabCorp is performing testing for COVID-19 nationally.

RHHBY: Roche is a multinational healthcare company specializing in pharmaceuticals and diagnostics. Roche operates testing for the COVID-19 and has been authorized emergency use by the FDA.

BAYRY: Bayer is a global life sciences and healthcare enterprise that specializes in various areas of health and agriculture. Bayer has been clinically testing their Resochin drug, which was originally developed for treatment of malaria. Now, the drug is being tested, and in China was discovered to inhibit the reproduction of Coronavirus cells. They continue testing so it can be made accessible to serious cases of Coronavirus.

REGN: Regeneron Pharmaceuticals specializes in the development of medicines for treatment of serious diseases. Regeneron has been developing, over the last couple of months, a COVID-19 antibody treatment for virus-neutralization.

2. Protective Apparel & Infection Control

MMM: 3M manufactures most know 3M for manufacturing tape; however, they are also the leading company in producing protective apparel for consumers such as face masks and respirators.⁶

APT: Alpha Pro Tech, Ltd. is another well-known manufacturer of protective apparel and infection control products. Due to high demand for masks and respirators, their stocks have grown over 1,000% in the last two months.⁷

3. General Healthcare & Healthcare Technologies

CURE: A broad healthcare ETF including companies from pharmaceuticals, health care providers & services, health care equipment & supplies, biotechnology, life sciences tools & services, and health care technology.⁸

CODX: Co-Diagnostics, Inc. produces the tools and technology for the detection of diseases like the Coronavirus. They are already shipping their products for detection of COVID-19 to 4 continents and continues to increase in consumer demand worldwide.⁹

^{* DGX: Quest Diagnostics performs testing for COVID-19 in mass, now expanding their testing capacity, specifically in the U.S.} 

^{* MDT: Medtronic is a healthcare technologies company which, during this global pandemic, has expanded their development and manufacturing of ventilators, respiratory filters, oxygenation machines and pulse oximeters.}

4. Cleaning & Disinfectant

CLX: The Clorox Company manufactures cleaning products for household and workspace. Clorox’s products have demonstrated effectiveness against viruses similar to SARS-CoV-2, another common strand of the Coronavirus.¹⁰

5. Work-From-Home Remote Communications Technology

ZM: Zoom Video Communications is a company that provides remote conferencing services, which has largely grown due to companies incorporating work-from-home solutions in the daily work setting.¹¹

WORK: Slack Technologies, Inc. is a work collaboration messaging interface that allows teams to work together remotely from home without going into work.¹²

6. Household Supplies & Groceries (Toilet Paper & Water )

COST: Costco is the recognized leader in membership-only warehouse clubs, providing large-supply household needs. Because of fears surrounding the Coronavirus, Costco is stocking up so customers can load their carts with household necessities.

* MCD: McDonald’s is the world’s largest fast food provider. In the midst of individuals working from home, globally, food delivery services are in high demand. Since most all dine-in restaurants are closed, McDonald’s drive-through and delivery are booming.

Performance of These Coronavirus Defense Trades:

The table below takes a look at the Coronavirus Defense Trades that have been executed over the course of the last week. At Harvest Investment Services, we monitor closely the investment decisions we make in regard to the best interest of our clients. Due to recent panic about COVID-19, these eleven stocks have actually grown over the past week and continue to grow even so. Any blank spaces are trades that have not been sold off yet. Several of the stocks we have been trading as Coronavirus Defense Trades have varied in price at a fairly volatile rate but have continuously shown stable growth in the span of these 6 days listed.

 Coronavirus Defense Trades | Last Updated 10/20/2020