Momentum Traders Are Seeing Huge Wins With Penny Stocks In July
When you talk about trading penny stocks, the low price nature opens the door for momentum to push stocks to higher percentages than blue-chips. These moves can come within days or even hours. A clear measure of growing or consolidating momentum is trading volume. I’ve talked about this in the past especially when you’re looking at trading versus investing in penny stocks.
Those flipping low priced stocks in such a short period of time will look for irregularities in volume. Identifying this type of change early can put you in place to take full advantage of a pending move. That is, of course, if the momentum is confirmed by a continuation in the market. Here’s what I mean by that. You can have penny stocks with intermittently higher volume for a few minutes.
Finding Penny Stocks With High Volume
That may set off an alert on a volume scanner. But if that volume doesn’t continue increasing, it was simply a false alert. If you were to buy that stock immediately when you see irregular volume, you would have likely been a new bag holder. The point here is that just like researching fundamental information, it’s important to analyze technical trends diligently too. So what are traders supposed to do?
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I’m not here to tell you how to design your trading strategy. But from what I’ve seen those who wait a few minutes and watch for set-ups to form tend to have more frequent, successful trades than traders who jump right in without analyzing for a trade set-up. It’s the old “sniper” versus “machine gunner” mentality.
A sniper analyzes its target and once it finds the perfect moment, they strike. Machine gunners blast bullets everywhere. But I digress. Today we’re going to be looking at a few penny stocks experiencing irregularly high levels of volume. Will they be on the buy or avoid list before August?
Penny Stocks To Buy [or avoid] #1: Remark Holdings Inc.
If you’ve read PennyStocks.com for a while, you know Remark Holdings, Inc. (MARK Stock Report). We’ve covered the progress coming from this company for months. If you remember back in April when we were first watching this company, excitement stemmed initially from “reopening” plans. Specifically, the question of “how will we control another wave?” was a focus.
In the case of Remark, the company focuses on thermal imaging among other things. In a series of tweets, the company kept the public abreast of new “opportunities” as it would appear. The company showed its technology being used in hotel lobbies, event spaces, and the like. The last week or so has been mostly sideways. Obviously compared to where it was in April, MARK stock is significantly higher. However, since it hit those 52-week highs of $3.56 in May, MARK has clearly consolidated.
At the end of the week, however, shares have begun to spike in both price and volume. July 31st saw the highest daily trading volume since June 16th. That was when MARK stock traded more than 58.5 million shares. What’s driving the momentum today? Aside from the cult-like following seeing today’s irregular volume, Remark filed an 8-K indicating that it had to correct a previously filed proxy statement.
“As a result, on July 30, 2020, we filed a Certificate of Correction (the “Certificate of Correction”) of the Charter Amendment with the Secretary of State of the State of Delaware that serves to nullify the increase in the number of authorized shares included in the Charter Amendment, which became effective immediately upon filing.”
Penny Stocks To Buy [or avoid] #2: IZEA Worldwide
Earlier this week we picked back up on progress coming from IZEA Worldwide (IZEA Stock Report). This has been one of the penny stocks to watch since May during the initial surge in coronavirus cases. The company is not part of the coronavirus vaccine stocks list. However, it was impacted positively by global lock-downs. In May, the company announced a streaming event to demonstrate the latest capabilities of BrandGraph®. This is its social intelligence platform. Over the course of the last few months, IZEA has continued to keep an open dialogue with the public and even sparked optimism earlier in June. IZEA announced significant deals with Fortune 500 companies.
This month the company announced that it secured a new contract with a “leading entertainment company, a division of a Fortune 100 corporation”. Though the specifics of this company weren’t disclosed, IZEA said that the contract was a 6 figure deal representing the largest award IZEA has received from the specific customer. In addition to that contract, IZEA was awarded a separate multi-national influencer marketing initiative by a Fortune 500 manufacturing company on the same day. IZEA will be executing a campaign in Europe and Asia for the customer, promoting athletic wear.
Friday saw shares of IZEA stock jump to initial morning highs of $1.42. No new developments were released by the company since earlier this month. Also, there haven’t been any new filings submitted. Is this simply follow-through momentum are is something else at play? There was, however, an update on the company’s site about an upcoming webinar to cover the ins and outs of social media app TikTok in August. Has that become the source of the recent surge in momentum?
Penny Stocks To Buy [or avoid] #3: Acasti Pharma Inc.
Acasti Pharma Inc. (ACST Stock Report) is another one of the penny stocks that has been on the radar for a bit. You might remember this penny stock from last year. ACST stock rallied from around $0.80 in May to initial highs of $2.95, pulled back, then rallied to 52-week highs of $3.08 just before the end of the year. However, as you might be able to see, ACST stock fell apart earlier this year. It came after Acasti announced disappointing trial results.
Last month Acasti filed its meeting request with the FDA to discuss TRILOGY 1 data, and gain alignment with the FDA on the interpretation of the results. There wasn’t much additional news over the last month. But that changed on Friday after Acasti announced it has completed its revisions to the pre-specified Statistical Analysis Plan for the TRILOGY 2 Phase 3 trial of CaPre. The company said it had also filed it with the Food and Drug Administration.
Acasti also announced it plans to host a conference call on or about August 31, 2020 to discuss the TRILOGY 2 top line results. The company said it will also provide an update on the timing for the reporting of the secondary and exploratory endpoints, and the pooled results from both TRILOGY studies. So heading into August, there are several things to keep in mind if ACST stock is on your watch list right now.