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Top Penny Stocks July 2019 Update

Tim Sykes

Let’s get some administrative particulars out of the best way earlier than I  hop into the highest penny stocks July 2019 ….

Please return and skim Prime Penny Shares to Watch in June. It explains my thoughts on “scorching inventory picks” and why I adapt to the market fairly than memorize patterns.

In a nutshell:

  • It’s extra essential so that you can perceive the method of creating a watchlist than to get so-called scorching picks from me. Or anyone else.
  • Your objective must be to grow to be a self-sufficient dealer. Don’t comply with my alerts — besides to know my thought course of.
  • Study to recognize patterns but in addition be capable of acknowledge once they aren’t working.
  • I present a every day watch record to Trading Problem students. Stocks come and go. I train trading, not investing. Be a part of the challenge to get my day by day watchlist.
  • Do your personal analysis. It’s a lot better for you to understand why I’ve put a stock on the record than to blindly assume it’s a possible trade.
[Disclosure: Some of the stocks mentioned below have been traded or otherwise discussed by Tim Sykes as part of his daily watchlist provided to Trading Challenge, TIMalerts, PennyStocking Silver, and Millionaire Masters Program subscribers. Tim Sykes may or may not hold open positions on these stocks at any given time. This list is not a recommendation to buy or sell any stock. Do your due diligence. Full earnings claim disclosure here.]

© 2018 Millionaire Media, LLC

The Broader Market : Prime Penny Stocks July 2019

We just witnessed one of the largest middle-finger salutes to the previous saying “Sell in Might and go away” in historical past.

The markets were not solely up in June…

  • The NASDAQ composite recorded its greatest June in almost 20 years.
  • The Dow Jones Industrial Average recorded its greatest June in 81 years.
  • The S&P 500 posted one of the best June since 1955. That’s 64 years.

Wow.

Just as the beginning of Might was the start of a month-long slide, June signaled a transparent reversal.

For instance, apart from June three, the market shot up day by day the first week of the month. The second week we saw healthy consolidation, and the third week, one other pop. The month ended with a purple week. But general the markets held positive factors for the month — and the yr.

Here’s a 1-year chart of the SPDR S&P 500 Trust ETF (NYSE: SPY):

SPY (S&P 500): 1-year chartSPY (S&P 500): 1-year chart

U.S. Markets Testing All-Time Highs — Once more

Last month I discussed the S&P seemed like a attainable double prime. Now the markets are as soon as once more testing all-time highs.

I additionally stated we’re only one China trade-deal away from a potential breakout. Issues haven’t modified an excessive amount of in that respect. We did get information out of the G20 summit in Japan that the U.S. and China will restart commerce negotiations. That’s constructive. Now we wait and see.

Penny Inventory Buying and selling in the Current Market

As all the time, I adapt my buying and selling to what’s truly occurring relatively than a prediction. I also modify based mostly on my personal schedule. I don’t pressure trades. June was no totally different.

I only took 15 trades through the month as a result of I didn’t see lots of my favorite setups. And … my personal schedule didn’t match very properly. I spent a very good part of the month in time zones that make trading the U.S. markets robust — like Japan and Hawaii.

Which may seem counter intuitive because the market was up. Welcome to trading. There’s quite a bit about it that’s counterintuitive.

Now, earlier than I offer you my prime penny shares to observe in July 2019, let’s recap the picks from June. This offers you an concept of how briskly things can change with penny shares.

Recap: June 2019 Prime Penny Stocks to Watch

  • Soliton, Inc. (NASDAQ: SOLY) went supernova on Might 28 and 29. Newbie shorts acquired squeezed as it ran from $5.82 all the best way to $29. In June it was uneven. It discovered help around $14, however on July 1 it cracked under help.
  • Obalon Therapeutics, Inc. (NASDAQ: OBLN) spiked in Might based mostly on the release of expanded medical knowledge and rumors of a buyout bid by Johnson & Johnson (NYSE: JNJ). The inventory just about tanked for the whole month. From its June 3 excessive of $1.58, OBLN dropped roughly 54% and is buying and selling within the 70-cent vary.
  • Eltek Ltd. (NASDAQ: ELTK) was a potential dip buy for me in June based mostly on its drop of almost 50% off of Might highs. ELTK spent most of June downtrending. It had one notable morning spike on June 10 but nonetheless closed down for the day. The inventory seems to be holding historical help in the excessive $3s to low $4s.
  • Legacy Reserves, Inc. (NASDAQ: LGCY) was the darling of the market on June three. It spiked roughly 540% on news the company reached forbearance agreements with its lenders. On June 18, Legacy filed for Chapter 11 bankruptcy with excellent debts of roughly $1.68 billion.
  • Castor Maritime Inc. (NASDAQ: CTRM) spiked on earnings news. CTRM has a history of failed one-day spikes. This time was no totally different. After its initial pre-market spike on June 4, it tanked. By the top of buying and selling on June 5, CTRM was again to pre-spike ranges and is trading within the low $four range.

Trading Lessons From the June 2019 Recap

Keep in mind, most of those corporations are terrible. Most will go bankrupt. That’s why I commerce the ticker moderately than spend money on the corporate. LGCY bagholders from June 3 obtained stuffed. Bagholders on any of those shares received stuffed, but the LGCY bagholders received the worst of it.

Take the time to review the charts of these shares. See how they performed. Research history to study patterns.

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Timothy Sykes’ Prime Penny Stocks July 2019

Once more, the shares on the listing made it due to the teachings they provide. They may not be in play by the point you read this. That’s the great thing about penny stocks.

How I Decide Shares for My Watchlist

Daily I search for the top % gainers. Whether or not it’s at night time or pre-market will depend on my schedule/time zone. Then I type them so as based mostly on volume traded. After that, I take a look at long-term charts, firm profiles, and so on. I all the time look for the information catalyst. Typically there isn’t a superb catalyst, which makes me more cautious.

With a monthly watchlist, it’s not much totally different since I don’t keep in trades long-term. I did select three steadily uptrending shares with multi-month runups for this record. Despite the fact that they move slowly, they might escape any day with the best information and quantity. We’ll start with these.

Digital Turbine Inc. (NASDAQ: APPS)

Digital Turbine has a nice wanting long-term chart. It’s been uptrending since November 2018. The corporate offers software program to the cellular business. Shoppers embrace unique gear manufacturers (OEM), advertisers, and app builders. The chart exhibits the inventory has the power to carry positive aspects and is buying and selling near multi-year highs.

Take a look at the 1-year chart:

APPS 1-year chartAPPS 1-year chart

APPS was an earnings winner firstly of June and has continued its uptrend. Trading quantity is low compared to the float however has increased since February. Keep in mind to take a look at ALL the indications explained in my Dealer Checklist Part Deux information. Quantity can have an effect on the convenience of your entry and exit.

Conformis, Inc (NASDAQ: CFMS) 

Conformis is another sluggish mover because of low volume, but the long-term chart exhibits a nice uptrend. The company designs, manufactures, and sells individually tailored joint alternative implants.

Here’s the 1-year chart:

CFMS 1-year chartCFMS 1-year chart

As you possibly can see on the chart, CFMS is a former multi-day runner. Most just lately, it had a three-day run starting after hours on June 25 following a $33 million spherical of financing.

Corindus Vascular Robotics Inc. (AMEX: CVRS)

Corindus Vascular Robotics designs and manufactures robotic-assisted techniques for interventional vascular procedures. They boast the only FDA-cleared robotic system for these procedures. Plus, years of medical evidence.

Corindus joined the Russell 3000 Index on July 1, following the annual Russel reconstitution.

Here’s the chart:

CVRS 1-year chartCVRS 1-year chart

Corindus spiked on Might eight even after they missed earnings projections by a penny per share. Why the spike on missed earnings?

  • Corindus Vascular Robotics announced elevated year-on-year income.
  • The company announced buy orders for 11 of their super-cool robotic techniques (referred to as CorPath GRX).
  • And Corindus introduced they have cash to burn.

A biotech with revenue progress, orders for merchandise, and cash within the coffers. Discover how the resistance close to $2.50 in March turned the help in June. That’s another concept you’ll come to know higher as a Buying and selling Problem scholar.

Now for a couple of current spikers…

Avid Bioservices Inc. (NASDAQ: CDMO)

Avid Bioservices supplies improvement and manufacturing providers to other biotech and pharmaceutical corporations.

CDMO is a current earnings winner. An analyst from Janney Montgomery Scott upgraded it to a purchase with a $10 worth goal. On that news, in pre-market trading on June 28, shares have been up as a lot as 20% from the day past’s shut.

Here’s the 10-day chart with 5-minute candlesticks:

CDMO 10-day chart, 5-minute candlesticks, extra-hours trading includedCDMO 10-day chart, 5-minute candlesticks, extra-hours trading included

CDMO has some positives and a few negatives. It’s an earnings-winner play reaching multi-day, multi-week, and multi-month highs. It’s a former runner. However, it’s choppy, and buying and selling volume in relation to its float is low.

The best news catalyst and a lift in volume might see this one run more. This can be a potential dip purchase only for me.

FuelCell Power Inc. (NASDAQ: FCEL)

FuelCell Power designs, manufactures, and installs fuel-cell power crops. Additionally they have options for power storage and recovery.

The 1-year chart under exhibits only one multi-day run again in February. The long-term development is all down. Discover the large hole up after FuelCell introduced a 12–1 reverse inventory cut up, which took impact on Might 9.

FCEL 1-year chart, 1-day candlestickFCEL 1-year chart, 1-day candlestick

After the reverse inventory cut up, the chart is ugly. So why add it to this watchlist? A couple of reasons:

  • Quantity began to select up on June 27 when FuelCell introduced a new carbon capture undertaking.
  • On July 1, it was one of many prime % gainers out there.
  • Volume on July 1 was heavy but nothing in comparison with July 2.
  • It’s the most important % gainer in the complete market as I write (July 2).

Take a look at the 2-day chart:

FCEL 2-day chart, 1-minute candlestickFCEL 2-day chart, 1-minute candlestick

After the run on July 1, I added this to the every day watchlist I share with Trading Challenge college students. Take a look at the MASSIVE volume on July 2. As I write during energy hour, the quantity is 133.08 million shares on a float of 20.75 million. In different phrases, the float has rotated more than six occasions in someday. Big. (Energy hour is the last hour of buying and selling before the market close.)

Also, the inventory is hitting a new high of the day. We’ll see what this one can do. As I stated, the long-term chart is dangerous. It’s very choppy. I gained’t chase it, so it’s a possible dip-buy only for me. Ideally on an enormous morning panic. A couple of Buying and selling Challenge students reported doing nicely trading FCEL on July 2. [Update: I tried to buy into the morning panic on July 3 but couldn’t get my order executed. It was moving too fast. Scary stock Whew!]

Ocular Therapeutix Inc (NASDAQ: OCUL)

Ocular Therapeutix is a biopharmaceutical company targeted on therapies for eye illnesses.

As you possibly can see on the chart under, OCUL dropped roughly 11% again in Might — the hole down on the chart. One in every of their therapies, referred to as OTX-TP, failed a part three trial. But there’s been a gentle rebound since then. The inventory just lately hit multi-month highs and is now inexperienced year-to-date.

Take a look at the 6-month chart:

OCUL 6-month chart, 1-day candlesticksOCUL 6-month chart, 1-day candlesticks

Now take a look at the 2-month chart with 15-minute candlesticks:

OCUL 2-month chart, 15-minute candlestickOCUL 2-month chart, 15-minute candlestick

Ocular Therapeutix had a number of information catalysts throughout this run:

  • Might 30 — Ocular Therapeutix announced they might present at three biotech investor conferences in June.
  • June 10 — there was a big volume of insider buying earlier than the launch of a brand new product.
  • June 21 — the corporate announced FDA approval of a brand new drug software.
  • July 1 — the corporate introduced the business launch of their DEXTENZAⓇ product to be used within the U.S.

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The best way to Use This Prime Penny Shares to Watch Record

Like I stated last month — this listing is NOT advice to purchase these shares.

As an alternative, research the charts, look them up in real-time utilizing your favourite stock screener. I exploit StocksToTrade every single day. It’s how I found these stocks and all of the stocks I commerce.

Perform some research to seek out what’s driving worth motion. I’ve given an summary of the information catalysts for these shares. Learn the press releases and articles. It’s all a part of your preparation to trade. The higher prepared you’re, the higher your probability take benefit when opportunities current themselves.

Watch How To Make Hundreds of thousands to study the most effective patterns. Apply for Trading Challenge should you’re ready to review and work more durable than you’ve ever worked in your life. I’m comfortable to have you ever as a scholar — but no lazy losers. Get on it.

Are you a trader? What’s your criteria for a stock to make your every day watchlist? Comment under. New to trading? Remark under with “I’ll search for the most important % gainers each day!”