Thoughts on the Penny Stock Market – 9/24/2009

Thoughts on the Penny Stock Market – 9/24/2009

The market for penny stocks has not been too good over the last couple of days. It appears as if the market wants to make a little bit of a pullback. It is well overdue but every time I think it is going to retreat a little in continues its upward march.

Penny biotech stocks have been especially hit in the last couple of days. In the near term I made a decent move getting out of XOMA since it gave up all of its gains yesterday. I will keep it on my watch list since I like the stock. If it pulls back into the low 80′s I will probably re-enter.

I made no trades today. GRO pulled back a little today but I like the way it is looking. MRNA also pulled back but still looks OK. However, FREE sort of collapsed today. It dropped below the 21 EMA and looks to have broken its slight uptrend. I will wait a few days before re-evaluating it.

One stock bears watching. It is PED, Petroflow Energy. This stock has recently landed on two different penny stock pick email lists. It was recommended only a few days ago and is now trading at .90 which is below where it was recommended. If these newsletters follow their standard pattern they will once again suggest this stock to their subscribers in the coming days. This may be a good spot to get in. I will look for something around .85 as an entry point depending on what the market is doing tomorrow.

Happy trading!