Penny Stocks: FreeSeas and Adolor

Two stocks that I have been following and actually own in my account began showing a few signs of life. FreeSeas (FREE) finished the day at $1.70. That was a little more than a 4% move. It is sitting just under the 21 EMA. A move above this moving average could begin us on an upward move. There was a recent article describing a potential rally in Baltic Dry Bulk Shippers. You can read the article here.

Also today, ADLR made a nice move. The question is will there be follow through. It closed at $1.61, up nearly 6%. Today formed a very positive looking candlestick on the chart. I would have liked to see it make this move with greater volume, however. It is basically sitting right at the 21 EMA. Tomorrow should be interesting to see if it can break through and begin an upward trend or will it slip back again. Keep an eye on it. As I have mentioned in the past Biotechnology Value Fund had been doing quite a bit of selling. It appears as if that has dried up so maybe the stock will be able to move up.

Also EPEX which I mentioned a few posts back as a chart to watch is no longer a chart to watch. It filed bankruptcy on October 2nd. Some of the best trades are the ones you never make. Make no mistake. This is the danger of trading penny stocks. That is why you never commit your entire account to any one idea. I am also happy that I never purchased the stock. In fact, I just noticed it a few minutes ago. I was not watching it on a daily basis and decided to check in again with it. Make sure that companies that you buy are starting an uptrend or that there is some catalyst for it to move forward.