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Top Penny Stocks to Watch, June 2019 Update

Forex Trading Charts

I guess you’re just itching for decent penny stocks to observe . Go on … admit it.

Deep sigh…

I’m making an attempt this new function on the weblog — a monthly listing of stocks to observe. But do yourself a favor: stop on the lookout for scorching picks. It’s super necessary that you simply perceive this listing shouldn’t be recommendation to trade these shares. My objective is for you to use this monthly listing as a part of your schooling.

Up to now I’ve been reluctant to publish a month-to-month listing of ‘scorching’ shares. The shares I trade transfer fast. Penny shares on my watchlist tonight is perhaps gone tomorrow or in a couple of days. Plus, I not often maintain a stock for more than a day.

My aim as a instructor is to give you information and instruments. That means you are able to do your personal research and create your personal watchlist. Your aim ought to be to turn out to be a self-sufficient trader.

I do present a every day watchlist to Trading Challenge college students. However I make it clear that these are shares I’m watching. It’s not recommendation to trade the tickers on the listing. Why provide the record?

Two causes…

  • First, it helps college students study what to search for. History is likely one of the greatest academics — for each lively traders and college students.
  • Second, I inform college students what I’m in search of to make the inventory move from just watching to a potential commerce. For instance, if a stock is up over several days it could possibly be a candidate for a morning panic dip buy.

So, once I give my students the record I anticipate them to use it as a starting point for further analysis. Please heed this recommendation. The extra research you do, the higher you’ll get at it. The extra information you’ve got of a stock’s historical past, the higher your probability of anticipating potential worth action.

Penny stocks could be extremely risky. In reality, I really like volatility. It creates superb opportunity for traders. Especially traders making an attempt to develop a small account. For those who’re a newbie, please learn this submit: Penny Shares for Rookies. It’s essential info on how you can get began in penny stocks earlier than you danger your cash.

[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.]

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The Broader Market

Every month I’ll also give a quick roundup of the broader market. It is advisable keep up with what’s happening because roughly three out of four stocks comply with the overall market. Also, macro events like commerce issues with China can have an effect on complete market sectors.

Did We Simply See a Double Prime?

As I write there’s an general downtrend out there because the beginning of Might. It’s like that previous saying: “Promote in Might and go away.” To the day, the top was Might 1. It’s a must to take these sayings with a grain of salt however … it’s pretty loopy what’s happened since that day.

To put things in bigger perspective, we’ve now had this virtually double prime going back to the highs of 2018. Which is horrifying. That stated, one China trade-deal away and the market might blast off to new highs.

Right here’s a 1-year chart of the S&P 500:

S&P 500 chart: 1-year to Might 31, 2019

Adapt to the Current Market

During most of Might I used to be sizing down or closing positions before the market close. That’s because certainly one of my favorite patterns, the OTC first green day, wasn’t enjoying out the identical method it did prior to now. The morning gap-ups or spikes just weren’t occurring.

All through Might I feel I only had one good overnight gap up buying and selling Kraig Biocraft Labs, Inc (OTCQB: KBLB) on Might 10 and 13. (It was truly an over-the-weekend hold right into a Monday morning hole up).

Although the general market has trended down, in penny stocks we’ve seen lots of huge spikes. But they haven’t been based mostly on a scorching sector, great earnings, or new product announcements. A number of the large spikes are just brief squeezes.

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A phrase of warning earlier than I get to the listing…

I don’t memorize patterns. I acknowledge them. I also recognize once they’re not working. I train my college students to do the identical. It is advisable adapt to the market. It gained’t adapt to you. The market doesn’t care about you.

One instance is the brief squeezes we’ve seen lately. Personally, I don’t like buying and selling short-squeezes. I discover buying and selling them troublesome. However I’ve students who’ve banked by going lengthy on breakouts through the squeeze. Some students have waited out the squeeze for good brief performs.

Other traders have not tailored to the markets. Many both obtained caught in a squeeze (shorts) or thought it will last eternally (longs). Beginner shorts, particularly, have gotten completely crushed the previous few months. The lesson: be prepared to adapt to the market.

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Timothy Sykes Prime Penny Shares to Look ahead to June 2019

The stocks under are on the record for the lessons they provide. By the point you learn this they could not be in play. Or they is perhaps on my backburner watchlist. That’s how penny shares to observe works. It’s why I really like them a lot.

Check it out…

Keep in mind these newbie brief sellers and the squeezes they’re causing? Our first three penny stocks to observe for June are all up more than regular on account of brief squeezes.

Each of those shares had some sort of catalyst to start out the preliminary spike. But the continuations are brought on by newbie brief morons who haven’t any clue what they’re doing. Some individuals need to study the onerous means. Be grateful, because they’re making it simpler for longs who wish to commerce brief squeezes.

Soliton, Inc (NASDAQ: SOLY)

SOLY is likely one of the latest low priced shares to go Supernova. This press launch on Might 28 introduced FDA 510(okay) clearance for their Speedy Acoustic Pulse (RAP) system. That began the preliminary spike.

Because of newbie shorts who enter method too early, SOLY ran from it’s open at $5.82 on Might 28 all the best way to $29 in two days. It’s holding in the mid teenagers as I write. SOLY is not a penny inventory — for now. We’ll see what the longer term brings.

The SOLY chart under consists of extended-hours buying and selling:

SOLY chart: 5-day; 1-minute candles with prolonged hours

I don’t chase stocks which are up almost 500% in a couple of days. So, at greatest, SOLY can be a dip purchase off a morning panic for me. It’s a superb example of what can happen with a mixture of a robust catalyst and over aggressive shorts.

Obalon Therapeutics, Inc (NASDAQ: OBLN)

Obalon is a business stage biotech with an FDA accepted gadget for weight loss. It uses a abdomen balloon system which reportedly solely takes 10 minutes to put in.

The inventory has had two current spikes. The first was throughout after-market and pre-market buying and selling on Might 21 and 22. It was based mostly on the discharge of expanded medical knowledge. Once once more, extremely aggressive shorts obtained squeezed.

Then the company did a financing on Might 23 and the worth tanked to roughly the extent of the providing — 60 cents a share. On Might 29, an unfounded rumor of a takeover bid by Johnson & Johnson (NYSE: JNJ) was revealed. A basic example of purchase the rumor, promote the news. The submit has since been eliminated. Once more, newbie shorts obtained crushed.

Take a look at the chart:

OBLN chart: 10-day; 1-minute candles with extended hours

The inventory has held above the $1 mark this time but the long-term chart is terrible, so we’ll see what occurs. Obalon proclaims first quarter earnings this week they usually even have cash to burn.

A word on biotech stocks: I’m not a fan. But Might and June are the season for biotech shares due to all the conferences. For example, Obalon introduced at the Digestive Illness Week conference in early Might.

Watch this 6-minute “Buying and selling With The Tims” video for opposing views on biotechs:

Eltek Ltd (NASDAQ: ELTK)

Eltek manufactures high-tech circuit boards for the defense, aerospace, and medical industries. The stock spiked on constructive earnings information on Might 29. Because of the early beginner shorts, the worth ran all the best way to a high of $11.56 per share on Might 30.

Right here’s the chart from the Might 29 spike by means of the first trading day of June:

ELTK chart: Might 29 — June 3, 2019

Eltek has dropped almost 50% from current highs. Because the market opened this primary week of June, this was my prime potential dip purchase off a morning panic. And although I didn’t take a commerce, there was a nice late morning dip purchase opportunity on June 3.

Legacy Reserves Inc (NASDAQ: LGCY)

Right here’s another firm with a horrible long-term chart in a sector I don’t like: power. However it was the most important % gainer in your complete market on June three.

Legacy Reserves is an oil and pure fuel company. They own and function properties in 4 U.S. oil areas. But the stock has dropped from a excessive of $26.39 again in 2014 all the best way to 12 cents a share earlier this yr. The corporate was anticipated by many to file for bankruptcy.

The inventory spiked on information of Forbearance Agreements with its lenders. I’ve included each the intraday and the long-term chart. Notice how dangerous the long-term chart seems. But when a stock spikes with volume like LGCY did on June 3, you must concentrate.

The chart on the left under is the intraday chart from June three; the chart on the appropriate is long-term. Notice the HUGE quantity spike on the last day of the long-term chart:

LGCY charts: intraday Supernova (left); long-term (proper)

At its high of day (HOD) on June 3, LGCY was up 540% — and nonetheless managed to close up 320% on the day. I didn’t commerce this because I don’t chase stocks up this much. I’ll be taking a look at this stock for a potential morning panic dip buy. If it gets a large enough dip the bounce could possibly be substantial. [update: LGCY spiking again pre-market as I write on June 4.]

Castor Maritime Inc (NASDAQ: CTRM)

Castor Maritime is a delivery company based mostly in Cyprus. The company seems to be a potential earnings winner, spiking from $5.15 into the mid $8s pre-market on June four. CTRM is a company with several 1-day spikes since itemizing on the NASDAQ in February 2019. The company released first-quarter earnings on June three.

Take a look at the chart:

CTRM chart: 1-month; prolonged hours; pre-market spike on earnings

Who knows what this one will do, as it’s still unproven within the long-term. It’s a potential purchase for me, but only into an enormous morning panic. On the chart above, notice a few issues:

  • First — trading quantity and worth movement have been low and boring for the complete month of the chart.
  • Second — the quantity, whereas nonetheless very low, has spiked along with the worth in pre-market trading on June four. [replace:thestockbroke$900pershareinpre-markettradingasIwrite

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Find out how to Use This Record

So many academics and pundits on the market inform you to purchase, purchase, buy … or promote, promote, promote. They’re doing you a disservice. I might put that in harsher phrases but I gained’t. For now. I’m not advising you to purchase or sell any of those stocks. That might be irresponsible.

So what am I asking of you? I would like you to study from history. Study from learning the long run charts of those corporations. Watch this information: How To Make Hundreds of thousands to study what the most effective patterns are. Don’t simply research past worth motion, study the perfect patterns so you realize what to concentrate on.

Additionally, use StocksToTrade to scan for one of the best shares every single day. I exploit STT day by day — and it frustrates me when students ask “Tim, the place did you find that stock?” Simply use it. All my favorite scans are built-in.

Perceive why the stocks are shifting. Work out what news moves the inventory, and why. Look into the corporate fundamentals. Get to know them. Some stocks keep on my radar for years. Not as an funding — to trade. I hope you perceive the excellence.

Do you retain stocks in your watchlist for days and weeks? Comment under and share your expertise. New to buying and selling? How will you employ what you’ve discovered as we speak to move ahead? Remark under — I really like to hear from all my readers.