Are Markets Indicating A New Bull Trend For These 5 Penny Stocks?
While the market has felt pressure from coronavirus concerns over the last week, the trend could be starting to turn around right now. Since the end of last week, the Dow and S&P have made an about-face. In fact, March began with one of the biggest one-day rallies in market history.
While many blue-chip stocks have gotten a lot of the attention this week, you can’t count out penny stocks whatsoever. In fact, if it weren’t for penny stocks, there likely wouldn’t be the speculative coronavirus stocks that so many traders have cashed in on over the last few weeks. Needless to say, some of the hottest sectors right now are in precious metals, biotech, and even real estate. These have served as potential hedges against the COVID-19 threat right now.
So what is the next focus for investors? Right now, honestly, when it comes to penny stocks, the name of the game is momentum. That’s the beauty of these cheap stocks. Most of the time it doesn’t matter what the rest of the market is doing as long as there are people to speculate on “things”. We’ve seen this time and time again.
While some still write off penny stocks as companies for “noobs” or “training wheels for real stocks,” those actually trading penny stocks professionally are making money. I don’t have to tell you about the massive breakouts that the coronavirus penny stocks made over the last 2-3 weeks. If that isn’t evidenced enough, let’s take a look at a few others that have started to perk up in the market in March 2020.