3 Names For Your Penny Stocks List Right Now
If you were trading penny stocks today, you were probably just as busy as we were. Tuesday marked one of the wildest days for small caps in quite some time. Now, not all penny stocks reacted this way. There were plenty that didn’t meet the mark. However, there were some explosive moves made in several sectors today including energy, biotech, and even some tech names. While the S&P had a tough time gaining a footing, we saw several stocks under $5 rally to highs not seen in years.
This trend was kicked off last week when shares of alternative energy and EV penny stocks took off. SPI Energy ignited the market with a high flying move from around $1 to highs of $46.67 the next day. Continuing this week, we also saw the likes of Aptorum ignite biotech penny stocks with its move from under $1.25 to nearly $30 during premarket. I’d like to emphasize something to everyone and it starts by just looking at these stock charts a few days after.
Trading v.s. Investing In Penny Stocks
Never forget that parabolic moves in most penny stocks (not all penny stocks) are unable to sustain at those extreme highs. You’ve got a lot of factors that play a role in the SPIs and KODKs of the market. It’s got to do with periods of short squeezes, underlying momentum, sector hype, and corporate developments as well. Once the dust settles, it’s up to you to determine if that valuation is reflective of the company’s fundamentals.
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At the end of the day most of these breakout stocks are worth a day or possibly a swing trade. Few rarely experience a parabolic breakout and continue higher for months on end. Again, there’s a difference between a parabolic move and one like NVAX went on this year. Novavax was one of the coronavirus penny stocks we watched move from under $5 to nearly $190 during the course of several months.
So your lesson for tonight is to focus on risk management and understanding that no one goes broke by taking a profit during a penny stock breakout. Even if the stock goes higher, you’ve secured your gains. If the trend ends up being strong (Like an NVAX) then you should have other entry opportunities down the line. With that in mind, were any of these trending names on your list of penny stocks today?
Penny Stocks to Trade [or fade]: CTI BioPharma Corp. (NASDAQ:CTIC)
CTI BioPharma (NASDAQ: CTIC Stock Report) has finally found some footing in the stock market today. Fortunately or unfortunately, the catalyst for that came after the market closed. CTI had a recent Pre-IND meeting with the FDA. In today’s update, the company said that it reached an agreement to submit an NDA for potentially accelerating approval of its pacritinib treatment. This is the company’s candidate to treat myelofibrosis patients with severe thrombocytopenia.
According to the company, the FDA agreed to a rolling NDA submission which is expected to begin in a few weeks. CTI expects the completion of the submission during Q1 next year. The NDA will be based on data from the the company’s completed Phase 3 PERSIST-1, PERSIST-2, and the Phase 2 PAC203 dose-ranging trial. There’s also going to be a conference call to discuss this development on Wednesday morning before the opening bell. Keep that in mind if CTIC stock is on your list right now.
In response to this milestone, Adam R. Craig, M.D., Ph.D., President and Chief Executive Officer of CTI Biopharma explained that CTI has been working with the FDA to identify an fast path toward approval for pacritinib.
“During a recent Pre-NDA meeting, we identified a data package from the PERSIST-1, PERSIST-2 and PAC203 Phase 2 trials that will serve as the basis for an accelerated approval application. In particular, we discussed risk mitigation measures to address the FDA’s prior concerns regarding safety.”
Penny Stocks to Trade [or fade]: Bionano Genomics, Inc. (NASDAQ:BNGO)
Bionano Genomics, Inc. (NASDAQ: BNGO Stock Report) is another one of the penny stocks trying. to find some semblance of support recently. At the start of the month, BNGO stock ended up consolidating to lows right around $0.47 and has managed to bounce, to some extent, since then. However, its 50-day moving average has become a sticking point for the penny stock. This level has acted as resistance in the stock since the end of August. Will that change this week?
After the market closed on Tuesday, Bionano came out with a key update. The company announced that its Saphyr system was adopted through reagent-rental agreements by two institutions in Australia and Slovenia. These included the Royal North Shore Hospital in Northern Sydney, New South Wales, Australia; and the University Medical Center Ljubljana in Ljubljana, Slovenia.
Both hospitals are said to be assessing Saphyr’s potential for diagnosing leukemias as compared to current standards of care. Commenting on the development, Erik Holmlin, Ph.D., chief executive officer of Bionano Genomics, said, “In particular, the Royal North Shore Hospital is part of the national health system in Australia’s most populous state and, therefore, we believe their adoption of Saphyr is a key step to entering the Australian market.”
After this new broke, BNGO stock took off after hours. Shares reached a high of $0.73, which would put it above the current 50-day and 200-day moving averages. One thing to point out, however, is that whenever BNGO stock has broken above this 200-day level in particular, it has failed to hold above it for longer than a few weeks at most. At that, BNGO stock has also clearly been volatile as well. So keep this in mind if it’s on your watch list heading into the midpoint of the week.
Penny Stocks to Trade [or fade]: Jiayin Group Inc. (NASDAQ:JFIN)
Jiayin Group Inc. (NASDAQ: JFIN Stock Report) also jumped afterhours on Tuesday. The penny stock has been working to get back above its 50- and 200-day moving averages over the last month or so. Heading into September, shares of JFIN gapped down big following a big earnings miss in its latest quarterly report. Revenue totaled 245 million RMB ($34.7 million) for the June quarter, down from 635.6 million RMB for the prior-year period. The company also said that loan origination volume also decreased.
The Chinese fintech company was met with swift backlash in the market. Shares dropped from over $4 to under $2.50 this month. However, over the past few weeks, JFIN stock has mounted a big of a comeback attempting to fill that gap resulting from the earnings miss. For now, it seems that it has achieved that during after-market trading on Tuesday. The penny stock rallied to highs of $4.85 and finished out the session at $4.
This late-day momentum stemmed from a follow-up to an announcement it made back in March. Jiayin announced that Geerong (HK) Limited, an indirect wholly-owned subsidiary of the company, closed the acquisition of 35% equity interest in Keen Best Investment Limited from China Smartpay Group Holdings Limited. Keen Best and its subsidiaries are principally engaged in internet microcredit business in China.