Buying Penny Stocks on July 5th? Here’s What You Need to Know
With the first day of the month starting off strong, there is a lot for investors to know right now. Although trading penny stocks is not easy, it can be profitable if done correctly.
And, as a result of the sheer amount of movement in the stock market right now, investors need to have a thorough understanding of what is going on. This is the best way to have a heightened chance of profitability. Considering all of this, let’s take a look at what you missed in the stock market on July 1st.
Stock Market Recap, July 1st, 2022
On July 1st, the stock market saw a major rally, with the Dow climbing by over 300 points. In addition, the S&P 500 climbed by over 1.1% with the NASDAQ up by over 0.9%. All of this is good news, however, it does come after several weeks of bearish trading. Because of this, it is unlikely that we will all of a sudden see a major bullish turnaround across the board.
[Read More] How to Find Trending Penny Stocks in 2022
Rather, this could be momentum simply from a new month starting or investors trying to capture certain stocks at low prices. With this in mind, here’s what you need to know about trading penny stocks on July 5th.
What to Know About Trading Penny Stocks on July 5th
As stated earlier, although we did see sizable bullish sentiment on July 1st, its is unlikely we will see overall bullish movement moving forward. Rather, investors should use some cautious optimism about the future. Because, we still do have several negative factors at play.
This includes rising inflation and the potential of a recession on the horizon. Now, this does not discount the positivity of the last day or so, but it is worth considering. With this considered, let’s take a look at three penny stocks to watch right now.
3 Penny Stocks to Watch Right Now
Mega Matrix Corp. (NYSE: MTMT)
One of the larger gainers on July 1st was MTMT stock. At EOD, shares of MTMT had shot up by more than 22% with a 5% after-hours gain. This is a sizable uptick for the company and one that comes after a one-month climb of more than 55%.
While shares of MTMT stock have lost in the past six months, this recent upward trend is encouraging for investors. The most recent news from the company came a few months back, so it is difficult to understand why shares of MTMT are climbing. Regardless, it could be worth adding to your penny stocks watchlist moving forward.
Doma Holdings Inc. (NYSE: DOMA)
Despite dropping by over 15% on July 1st, shares of DOMA stock managed to climb by more than 5% in after-hours trading. In the past month, shares of DOMA stock have fallen by more than 55%, which is not encouraging. So, to understand whether or not Doma Holdings is worth buying, we have to take a look at its most recent news.
As a real estate-focused company, DOMA has not had the easiest time as of late. And, recently, the company restated its commitment to diversity through its inaugural impact report. While it is hard to say whether DOMA stock will climb or not moving forward, we do know that it is moving right now. Considering this, will it be on your list of penny stocks to buy or not?
Sonder Holdings Inc. (NASDAQ: SOND)
On Friday, SOND stock managed to shoot up by over 11% during trading and over 3.4% during after hours respectively. And, this comes after a one month drop of more than 30%. If you’re not familiar, Sonder is another real-estate focused company, offering vacation rentals to its users.
In the past few years, it has fallen in value due to Covid, however, it does look like the company is working to build its business right now. With its big gain on Friday, SOND stock is encouraging right now. However, it is showing a very high amount of volatility. So, with this in mind, do you think it is worth buying or not?
Which Penny Stocks Are You Watching Today?
While finding penny stocks that are worth buying can be tricky. There are plenty of ways to do just that. And as a result of the sheer amount of momentum in the stock market, investors need to make sure to stay on their toes.
This means considering what is going on in the stock market and understanding exactly how to use that as an advantage. With all of this in mind, w which penny stocks are you watching today?