I apologize about the lack of watch-lists and blog post this week. There was a death in the family so I have been dealing with that for the past couple of days, but am looking forward to get back to blogging and trading starting….. today! Also, this weekend I’ll introduce the Charting 101 series which will run into next week also and will be filled with tons of information on trading penny stocks with stock charts. Here are your penny stocks to watch for today…

ISCO is the only potential penny stock to short for today. Muli-day spiker we have here with some fluff news that really doesn’t justify a move of this magnitude. I’d look to short this penny stock on a green-to-red move OR a break of 1.00. Make sure if it breaks 1.00 that you have solid selling volume because that will confirm the change in trend. Get ready!

CSUH this penny stock had a grrrreat breakout on Wednesday above the blatantly obvious .15 resistance. Only had a 5% move up yesterday which leads me to believe this penny stock has more room to run. RSI is in the power zone and this one looks like it wants to run higher. Watch for buying pressure right at the open to initiate a position. Definitely a potential buy.

SNRV another solid breakout penny stock play here. Broke out yesterday over the 2.00 resistance to close at 2.20. Methinks this has more room to run and I want to be in on this run. Beware though, this is thinly traded. Only 43 trades yesterday on 46,000 shares traded…so trade smartly. This is only a potential buy if the spread between the bid and the ask isn’t too wide.

Sorry for the lack of a penny stock watchlist yesterday as I was very busy, and same for this morning. I probably won’t be able to trade today, but goodluck to you!

Gonna make this quick cause I gotta leave in a sec!

Potential Shorts

BIOF

CMZ

LEE

COOP

PSOF

Potential Buys

COT

Monday is shaping up to be a great start of the week and month for trading! There are tons of penny stocks to watch, but I give you the best 8 based on risk/reward, tradeability, and predictability. Lets make money, shall we?

INSM hello breakout! A Very nice breakout this penny stock saw on Friday on legit volume, too! Has all the characteristics of a potential classic 2-3 day run- off the initial breakout: increase in volume, break of resistance, and the Relative Strength Index is in the power zone (70). I’m definitely going to consider buying this penny stock first thing..if and only if it opens @ 1.50 or above.

TGIC big spiking penny stock on Friday going up over 100%+ on the day……on NO news a.k.a awesome. great. fantastic. potentional short. Although it did give back a chunk of change from the highs on a common Friday afternoon fade, it probably has more to give back. Looking at the 5 min chart there is no defined support, just a bunch of stair-stepping…which is the only thing I don’t like about this penny stock. I like clear support lines to short into, but nonetheless keep this on watch!

ABR wrote about this penny stock in THIS post…maybe it is about time this thing cool down? Solid sideways price action from late morning to the closing bell on Friday so this penny stock should be about to make a bigger move somewhere. Watch for a green-to-red short or a short on a solid break on 3.17.

TPGI is a penny stock up over 90%+ in 3 days on zero news. Balance sheet doesn’t look too bad, but the earnings are definitely not what you would call “earnings”. Maybe try to short this penny stock on a break of 2.00 but, not my favorite potential short though.

RUTH has been on my radar since the middle of last week and has always been a good penny stock to short on its run-ups. Hopefully this one isn’t any different..problem is we just need to figure out when this sucker is going to drop. Considering its counter-part MRT was in the red on Friday I think it’s time for this one to have a negative move of its own. It is actually setting up to be a triple top, and as you know from A Chart Pattern That Will Make You Money Shorting Penny Stocks….it’s one of my favorite patterns to short. Key support price to break for a great short will be 3.94. Watch It!

ECPG probably a penny stock comming up on many of your scans or other blogs. Nice run of 60%-70% past few days but,  I wouldn’t consider shorting this penny stock as the books and the fundamentals of this company are pretty damn good.

CITP penny stock has rocketed up over 100% on 8 consecutive green days…all for earnings expectations. Well, earnings came out and they’re quite poor but what else can you expect from this company? CEO said that their huge debt line will be reduced even slower than it was in 2008..not good considering how much debt they have stocked up. Taking the dismal earnings and over-inflated price I’m possibly thinking about shorting this sucker.

COT will this be another penny stock earnings runner like we’ve seen lately? (i.e. DDRX, LNET). Definitely a potential buy only if there’s a big presence of buyers from 10:30am and on! Many are thinking about shorting this but people….they reported a 1st quarter profit.

Let me refresh your memory on what the last 2 penny stocks did that reported profit-turning earnings.

Will COT act the same?

You can read the article here

Demanded by investors and corporations, the SEC is trying to put resistrictions on Short Selling saying that this trading practice “gutted” vulnerable companies and “worsened” the market’s downward spiral.

So let me get this right…

Corporations, specifically in the financial sector, are blaming us short sellers for their downward spiral. The article even goes as far to say that the Lehman Brothers collapse was caused by short sellers. Please tell me how that makes sense. Maybe the Lehman Brother’s collapse has do to their ridiculous leveraging and sub-prime interest rates? Huge leverage=huge risk- it’s as simple as that. All these financial companies took huge risks and lost plain and simple. So why blame the fall on us? Aren’t we just traders and investors doing our job, by capitalizing on potentially profitable situations? In these cases shorting stocks that we felt were bound to go down.

So what kind of changes is the SEC mulling over?

Option #1: The Uptick Rule- which requires short sellers to wait to sell shares until a stock trades at a price above its previous trading price.

Option #2: The Upbid Rule- which would allow short sellers to enter only at a price above the current bid for that stock.

As pointed out in the article I really think these rules won’t solve Wall Street’s flaws, as it will definitely take money out of the market, which is exactly what we need don’t need at this point.

So what does this mean for us short sellers?

Honestly it will have more of an affect on us poor penny stock short sellers if these “rules” are implemented than it will on any other short seller. As you know penny stocks tend to have some wide spreads between the bid and ask sometimes and this rule is solely based on spreads. Simply put the bigger the spread the bigger the effect these rules will have.

I’m tired of reading about bitter companies and investors blaming this fall on the short seller. Blame it on the ignorance of over-leveraged hedgies.

What do you think?