Let’s see if the DOW can post another green day today and extend this rally! Remember that this week first quarter earnings come out so watch the #’s. With that being said, key in on the banking sector and the earnings there. We’re likely to see a drastic drop if the reports are bad or if the numbers pleasantly surprise investors in a good way, we’re likely to continue with the recent upward market momentum.
Enough with the market summary, lets talk about some hot penny stocks to short, unfortunately I’m not seeing any good breakouts to buy for today.
ZLC - Want some jewelry? ZALES is setting up to be a great short as it has been running and gunning from 1 to around 4 the passed 2 weeks with no significant news whatsoever and some pretty lousy financials. Must’ve spent too much money on those commercials. The chart has some resistance around $5.00 so short at that point if it some how manages to reach that point (I doubt it will). The point i’d be focused on is the 4.00 support line, if this penny stock goes red tommorrow it’d be really safe to short on a break of 4.00.
AINV – I featured this penny stock on friday’s 4 Hot Penny Stocks to Watch and it ended the day down about 3% after a choppy session. Some analyst upgrades have catapulted this stock higher but I think this run is gonna take a break, and I’m going to try to capitalize on that break by shorting if it breaks the 4.50 price level as there is support stacked up there.
DPTR – Up almost 100% over the past 2 days on no news (that I can find). Setting up to be a potential short, but I’m only interested when or if it breaks the 2.00 mark, which may not be tomorrow.
ZZ – A hugely overbought penny stock right now with an RSI showing 83, but for maybe good reason as they produce a profit in the 1st quarter. Either way it’s setting up as a potential short as this is almost getting out of hand. It broke over some intraday resistance at the end of the day leading me believe this may open up higher. If it does Id love to short on a green to red move. Also keep in mind that the 200 day moving average is lurking above and if it goes up to that point it’ll probably bounced off and be a good short from there, too!
BYOC – What a joke of a company we have here. This is the definition of a penny stocks! Anytime a company that has an operating margin of -750% and spikes is always a potential short. Keep an eye on this tomorrow.
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