3 Penny Stocks To Watch Right Now
The stock market saw something it hasn’t in quite some time: a full halt. At the open today, the S&P opened roughly 7% lower than its previous closing price on Friday. This triggered a circuit breaker halt for 15 minutes. This is a safeguard against big sell-offs in the market. While it isn’t a frequently seen event, today saw a perfect storm of bearish response to events over the weekend. Not only were there more jitters from additional coronavirus cases, but the tension between OPEC and Russia reached a tipping point.
The latter was the straw that broke the camel’s back. On Sunday night, stock market futures started pointing to a red open on Monday but I don’t think anyone thought it would get as bad as it did. By midnight, the futures market pointed to a slide of over 1,200 points.
And by the time the markets were open, we saw the Dow slide more than 1,800 points. But this doesn’t mean there aren’t opportunities in the market right now. In fact, if you look at penny stocks today, you’ll see that there are many more trading in the green than there are blue-chips.
The fact is, right now, the markets are seeing volatility in general. The S&P ETF (SPY-Free Report) dropped nearly 20% since February 20th. That’s not the norm but it has been the case for the last few weeks. My point is that traders/investors could be getting used to short-term trading compared to longer-term investing right now.
Penny stocks tend to be the perfect place to accomplish this task. So, it’s no wonder why we are starting to see more people jump into the mix. Well, that and the fact that most coronavirus stocks are or started out as penny stocks. Now, are all penny stocks good to buy? The short answer is no. But since coronavirus is a big “thing” right now, it might not hurt to take a closer look at a few penny stocks this week.
