Yesterday’s market action proved to be excellent for all short-biased traders. Most of my watchlist perform very well. I traded penny stock RHIE yesterday on the short side for a small profit. You can view my trades here.
Now on to today’s penny stocks to watch…
ONTY – Personally I think this is setting up to be more of a short than a buy contrary to what some might believe. Yes it is making higher highs BUT its gotta open tommorrow at 2.88 or higher to be considered a buy. Not a favorite to play right now just because I’m not certain of a direction this penny stock could take.
SPPR – Not seeing any reason for this latest little spike. Ton of resistance at the 1.16 price line, so this could set up to be a short, but don’t expect much out of it. If you’re one of those pennystocker’s with under $25,000(Like ME) I wouldn’t waste a daytrade on this penny stock.
AIB – This is an Irish bank play that has ran from 2 to 3.49 the past couple of days on news that the Irelands government could clean up the banks with an emergency budget. Yet they haven’t announced if they’ll alleviate the hard to sell assets to clean up their balance sheets. Keep it on watch for a short as 3.60 is a stiff resistance line.
CZZ – Detailed in yesterdays hot stocks to watch. It made another strong move up today while the Latin American markets ended the day in red distinguishing this penny stock as a leader in the LA market. It actually may be more of a buy right now than a short, but see what the price action is like before you make a decision to short or buy. Watch the 4.49 price break for a short and the 4.95 break for a buy.
DIGA – No news to justify this upward strength this penny stock is displaying. It’s definitely in the overbought position with an RSI showing 87! BUT don’t count this one out as it could have another leg up. I’m looking for a short position on a green to red move.
NLS – Watch this one for a short-biased trade as I think this penny stock might have more room to fall considering there’s no support til .80, right now it’s sitting at 1.12. It broke it’s afternoon consolidation the last 5 minutes of trading so there’s a chance this could gap lower.
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Anybody else watching MESA?
They’re cutting losing operations in China, have new inventory to re-purpose on domestic routes, converted their debt, and I’m guessing at .13 it’s a take-over target for Virgin or Republic or one of their client carriers. Am I nuts or is this one primed?
Right now MESA is a little iffy as the chart isn’t exactly telling me it’s a screaming buy, yet the fundamentals are looking pretty good with the news coming out. I’d wait until it consolidates more before I’d hop in!