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6 Penny Stocks For May 6th

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ATRC huge 125% 1 day surge yesterday caused by a better than expected earnings report and news that they have an agreement with a credit facility. We all know what these penny stock earnings plays have been doing lately so definitely look for a continued move today especially since looking at the 5 min chart there was a TON of volume and buying at the end of the day, I mean a ton. This bodes well for a positive move today, but at the same time if it gets too overextended watch for a fade from an early morning spike!

CBBO I don’t know what caused this penny stock to have a 106% run yesterday..possibly a late reaction to earnings? BUT the earnings weren’t good, balance sheet is still poor, downtrending chart the past 6 months, and it failed to close over the 200 day moving average…all these factors lead me to believe this penny stock might be a good short for today. Watch for a green-to-red move, or a break of 2.30 to the downside to initiate a short position.

COT here’s the deal: it’s an earnings play..you know I don’t like to short these penny stocks until they get waayyyyyyy tooo overextended BUT… this penny stock has shown fading volume each of the last 2 days. I’m thinking it’s kind of stalling here and if it can maybe crack 4.00 you’ll be able to make a quick .20-30 cents per share profit on a short trade. That doesn’t mean that I don’t think this sucker will continue to fly up, though.

NCOC a decision comes today on what direction this penny stock is going to head. Sideways price action today plus the fading volume makes me believe if this penny stock even gets a hit of negativity on the day it could drop to give you a reasonable short selling profit. A price point to consider shorting at would be a break of 2.40!

PMI not really sure of the reason for this three day run up in this penny stock. Many might be thinking of shorting this sucker, but I’m not to sure..yet. Actually right now, looking at the 5 min chart, the huge volume buying pressure at the end of the day over the previous resistance from earlier in the morning makes me think this run continues today. But again be on the lookout for an early morning spike then fading price action…if this infact goes up today.

STXX holy 200% run in the last hour of the trading day. Not one trade was made until 3:00 pm and from that point it was a total surge. If you’ve gotten my FREE eBook, you know these late spikes are GREAT shorting opportunities. This penny stock is thinly traded with only a little over 100,000 shares traded AND it’s spread is totally wacked out. Probably a little too risky for my taste, but maybe not for yours?

A Penny Stock’s Short Interest: What It Tells You

Short interest is the total number of shares of a particular penny stock that have been sold short by traders but have not yet been closed out or “covered”.

Short interest is calculated by dividing the number of shorted shares by the number of shares outstanding (all available shares offered), or alternatively you can just go to ShortSqueeze.com and they give the information to you automatically when you input a certain penny stock’s symbol. Short interest is only calculated twice a month in stocks, not everyday, so keep that in mind.

If you go to ShortSqueeze.com you’ll see what’s called “days-to-cover” which means that’s the estimated time it would take to cover all shares that are short in the penny stock.

Here’s The Point: The higher the days-to-cover aka short interest ratio, the more likely they’ll be a short squeeze!

So knowing this, how does it help you? Well, whenever I mention a penny stock is setting up to short, and you DO in fact open up a short position in it…you should check the short interest of that penny stock to see the possibility/magnitude of a short squeeze.

Here’s another point to consider: Say there has been a huge manipulated/hyped run of a penny stock that we all know is a scam company…every pennystocker out there is just waiting to short this thing at the right moment. Then that moment happens but now theres so much shares short (because of it’s popularity) that every trader now is vulnerable to a short squeeze.

If you’ve read this post and still don’t exactly know the whole deal behind a short squeeze, get my FREE eBook, cause I explain everything about the short squeeze.

The lesson here is to always consider the short-biased popularity on a given penny stock because the more shares short the more you’re at risk for a squeeze. Don’t get juiced!

9 Hot Penny Stocks Picks For You While I’m Taking Final Exams

Exams start today so I have to keep it short cause I’m studying!! For all you pennystocker’s lucky enough to not have to take exams, here’s some penny stocks to watch!

NSHA – surged 95% yesterday on NO news.  This penny stock has a wicked down-trending chart, so definitely watch for bitter bagholders to dump this. Because of that it’s a potential short.

ABR I keep thinking this penny stock is going to tank, but it defys the odds and keeps chugging along. It’s coming up on the 200 day moving average resistance which may just stall this 200%+ run over the last week. Watch for a green-to-red short, probably.

CLUB wow this penny stock close 1 cent below the 200 day moving average. Now on a close to 100% run from last week, and today may be the day we see a red day. Watch this penny stock for a short play especially after they announced that earnings plunged.

EQUR little pinksheet penny stock breaking-out, but didn’t have enough of an increase in volume for me to give this breakout any validity. Nevertheless keep this penny stock on your watchlist.

INSM failed to continue it’s breakout from Friday after getting rejected yet again at the 1.50 pricepoint. BUT if it somehow gets past that today on big volume then it’s a total buy.

LNET is a penny stock that had great earnings and showed continued strength yesterday after breaking out of the 4.20 resistance. If this penny stock would’ve seen more buying pressure yesterday it’d be a no brainer buy, but instead just watch how it acts at the open. If it’s getting some buying pressure then it may continue to trend upward, therefore would be a good buy.

NCOC more of a buy now than a short even if it’s gone up over 100%+ in two days. Reason being is that Goldman Sachs gave coal stocks an upgrade so these coal related penny stocks probably still will run for atleast another day. Because of that this would be a good buy on a cross of 2.60.

RUTH had its first red candle yesterday from its huge run over the past week. I expect possibly another downward move today on a break of 3.60. or a green-to-red short move. Keep this penny stock on watch.

TPGI 3- day run on no NEWS and a horrible downtrending chart. Look for a short play to come upon on a break of 2.00…but only if the volume is there on the break.

Only The Best Penny Stocks To Watch For May 4th

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?

Where Art Thou Penny Stock Promoters?

Borrrrrriiiiingg out there today: Only 4 penny stocks to watch — What happened to the penny stock promoters? You know, these guys. Not much going on right now with most attention being paid to the swine flu penny stocks, but there’s nothing technical about the charts on those plays that I really like…yet. Setting up to be a pretty boring Thursday in penny stock land with only a few possible trades, if and only if they cross the mentioned price points. None on the watch list are buys, just possible shorts.

ABR is a nice multi-day penny stock spike –possibly due to accumulation before earnings are reported on May 7th. Can’t really see how earnings would be any good considering its a Financial/Real Estate Trust. This company’s financial statements make me cringe when I look at them..loss of 81 million, Cash of 800k, and Debt of 2 Billion. I’m looking to short this run pretty soon, whether that’s today or in the next week remains to be seen. It’s still got some room to run and is making a nice little trading range between 2.28 and 2.55. Lets see what it does this morning–a break above 2.55 would signal a possible continuation with its spike.

DTG is making a very nice run here that very well could come to an end today when you take into account their credit exposure to Chrysler, who apparently is close to Bankruptcy. Most of Thrifty’s rental cars are from Chrysler and if reports are true that lenders have broken off talks with Chrysler then this penny stock could very well fall from it’s recent run up. Here’s the deal: 5 min chart is forming a double top, and a break of 3.20 could nail you some simple short selling profits.

MNTG I’m not feelin’ this recent run of 100%+ in two days. No news out plus it’s coming up on the 200 day moving average resistance at 2.31. All the variables point to a downward move. Will we get that today? A good short entry would be on a break of 2.00 on solid volume. Keep in mind this is connected to the casinos, so it may move with the sector.

TRIB is a swine flu penny stock that soared yesterday 60% while all the others flopped. This surge can be contributed to their very good earnings report more so the actual swine flu itself. Right now, considering the earnings, I probably won’t even think about shorting this stock. If it gets way over-extended then my sentiment may change.