Although the FDA cleared the one-dose Johnson & Johnson Covid-19 vaccine for emergency use earlier this year, the agency, along with the CDC, has now recommended a pause in its use. 

Six incidents of a rare blood clot called cerebral venous sinus thrombosis, which forms in the brain and causes stroke-like symptoms were reported within six and 13 days after the vaccine was received. 

“We are recommending a pause in the use of this vaccine out of an abundance of caution,” the Food and Drug Administration (FDA) said in a joint statement with the Centers for Disease Control and Prevention (CDC). 

Although the FDA and CDC have been quick to put a pause on the distribution of the J&J vaccine, perhaps a more thorough approval process should have been done in the beginning. 

Nearly 7 million doses of the J&J vaccine have been administered in the US. 

The CDC has administered an independent committee to review the reported cases. 

Cases of a similar clotting issue have been seen in people who took the AstraZeneca Covid-19 vaccine, which is being distributed in Europe, Britain, and Canada, but not the US. 

The AstraZeneca and Johnson & Johnson vaccines were built using the same technology; a benign, weakened virus called an adenovirus to carry small bits of the coronavirus genetic material into the body. 

If the FDA and CDC do conclude that there could be a relationship between the blood clots and the J&J vaccine, the agencies could still say the vaccine should be used.  The reason being the benefits might outweigh the risk. 

So far, over 120 million people in the US have received at least one shot of a Covid-19 vaccine. The majority of those being either Pfizer/BioNTech or Moderna. Only 5% have received the Johnson & Johnson vaccine. 

The White House said in a statement that the pause will not impact the US vaccination plans, that there is still enough supply of the Pfizer/BioNTech and Moderna vaccines for every adult. 

So the question here is, why was the J&J vaccine rushed through the approval process in the first place?

Could the answer lie in J&J’s financials?  

After the J&J vaccine pause was announced, the stock, understandably fell, but then something quite unexpected…a rally from J&J. 

Just hours after the US Government put a stop to distribution, the stock rallied.

What does this mean for J&J?  A vaccine approval, then a sudden and unexpected halt to that vaccine, then a market rally.

It means the market doesn’t care about what the FDA or CDC thinks about J&J.  And the government really cares about the market…we know that from previous experience. 

Is there a correlation between the J&J shot being yanked from shelves and the almost immediate rally of its stock?  Or is this just another market anomaly that can only be explained by strong fundamentals and good luck?

We all know there’s no good luck when it comes to the market. So what gives?

This is another aspect of the financial war.

Even when the government means well — and we can only assume they are sincere about trying to protect people from side effects — their actions still send major waves through the market.

It’s always something to be aware of when you’re trading, so keep reading and keep fighting.