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Clearwire (CLWR:NASDAQ) The day after earnings, shares of CLWR have pulled back. Even more so after the CEO’s mid-day comments.Yesterday we highlighted that Wednesday’s move could have been due to short covering and that the $1.64 gap fill still remains in play. A neutral view might be best on CLWR unless you are a micro scalper or rebate trader.

NASDAQ ETF (QQQ:NYSE)The only reason I am mentioning this ETF is that it could be a mover if the Groupon IPO works in a big way. You know as well as I do that the talking heads on cable news can change their opinions quickly. If Groupon trades at a better than expected premium, hedge funds could bid up NASDAQ futures or simply just by the Q’s in anticipation of expanding valuations of upcoming IPO’s with strong VC backers.

Oil Services ETF (OIH:NYSE)Shares of this volatile ETF are up nicely so far today, although on volume too light to claim a reversal. However, if the consensus changes, and the long term view of the economy gets better, then oil stocks might catch a bid. OIH just filled an upside gap, but the chart is very choppy, and it’s hard to make a call for short term swing traders. However, any type of rally could cause a retest of the $136 area. penny stocks under 1 cent 2017

Washington Mutual (WAMUQ.PK) We keep talking about this zombie penny stock players dream, but it’s been dead for both bulls and bears. Like many bankruptcy plays WAMUQ is prone to year end tax selling, which is starting now. Longs should hope that it holds the 0.067 level holds.

Mistral Ventures (MILV.PK) This low priced stock has all the fixings of a hot penny stock with PR’s about medicine the common cold and very nice chart. But as in all pink sheets plays, the jury is still out. Although shares seem to be making a constructive pullback today, a break of the .10 cent level might be the only thing that will rattle naked shorts unless substantive news is announced or a flu epidemic occurs.

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Corning (GLW:NYSE)Management upped GLW‘s dividend and approved a stock buyback. GLW is consequently up over 5% at the time of this entry. But how many times have we seen this type of shareholder friendly news fail for short term traders ? If you have a long term time frame, the recent GLW news is positive, but traders should remember that there is still a downside gap that needs to be filled.

Apple Computer (AAPL:NYSE)It doesn’t take a genius to figure out that the Steve Jobs related news is weighing on the stock. However, many investors might be underestimating the innovation of the successors. Keep in mind that the $360 range is the short term line in the sand, and recent history has shown us that institutions love to buy dips in AAPL.

JC Penney (JCP:NYSE) I am mentioning this retail name for one reason, and it has nothing to do with fundamentals or technicals. JCP lowered guidance and the stock is up so far, and is near the highs of the day. A stock that goes up on bad news is often a sign of a bottom. Add JCP to your list of stocks.

Morgan Stanley (MS:NYSE)What a difference a couple of days makes. penny stocks july 2017 We touched on MS a couple of days ago when everyone was extremely negative. Just remember that the time for bounces in quality names often occur when pessimism is high. So is it time to sell after this recent bounce ? Time will tell. Just remember that tomorrow is Friday and a retest of lows on MS in the near future wouldn’t be a surprise.

Molycorp (MCP:NYSE) MCP has two different types of followers. On the long side there are many who feel that MCP is a 3 digit name at a minimum. On the other hand, some bears feel that the RE bubble has burst and MCP might trend back towards it’s IPO price. Just remember that despite the perceived economic slowdown, MCP has some support in the low $30 range.

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If you like the prospect of being able to see a possible 500% return in just a few hours or are skeptical about losing as much in as little time, take a look at some of these ideas that can help you be more successful.

penny stock big board Penny Stock Tips

Penny Stock Trading

Keep Track of your holdings.

One of the worst mistakes that people make when investing in penny stocks is that they will buy the company and then forget that they own it.  This could prove to be an extremely costly and unnecessary error for investors.  This is a major rule that applies to both blue chips and penny stocks alike.  Because of the volatility of penny stocks it is even more important.  The chances of your Dell shares spiking 200% in a day and then dropping back to even are pretty slim but because penny stocks can thinly traded, this is an every day occurrence.  These are opportunities that you do not want to miss.  Put together a penny stock list of your holdings and track them daily.

Don’t invest more than you can lose.

When you see hot penny stocks that is starting to move, it can be hard to keep from taking a 2nd mortgage on your house so you can buy as many shares as possible.  Getting in over your head while investing in penny stocks is like fighting a losing battle.  You are almost guaranteeing yourself a loss.  When penny stock investors own a position that gets cut in half, they will often double their holdings to try and make back their losses.  9 times out of 10 this is an awful mistake.  Take a look at why the position is down.  It will take a lot of news to retrace a 50% loss.  Even though penny stocks can show you some serious profits, they are volatile and have the potential to go the other way just as fast as they spike up.

Listen to the Angel….. Not the Devil.

So you just bought a hot penny stock that jumped 500% in two days.  Why not hold it until it hits 1000% right?  WRONG!!!  Once investors have made a huge profit, they often look to realize the gains.  If have a position in an illiquid penny stock that has just made a move, chances are it is going to come right back down when people start to take profits.  Set certain entry and exit points on your holdings.  Remember that those gains are not realized until you pull the trigger and sell the holdings.  Don’t get caught holding the bag.

We will be sending out more penny stock tips to our subscribers at pennystockexplosion.com

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cascadia investments CDIVAs many of you may know, we often mention penny stock scalping on this site and how it is extremely profitable for some traders, but this task is not for the novice, as many of you have witnessed in today’s session. Successful penny stock scalpers basically buy large amounts of shares on the bid and immediately join the ask price as a seller. Even though theses transactions may not be overwhelming on a dollar amount basis, if executed correctly these trades can often generate a fair sized percentage gain. Traders can generate a decent income by just hitting on 3 or 4 of these trades in a day.

Along with Washington Mutual (WAMUQ.PK) and Lehman Brothers (LEHMQ.PK), Cascadia Investments (CDIV.PK) was a favorite of many penny stock scalpers who had a long bias. At one point CDIV had all the makings of a hot penny stock. The IHUB message board seemed very well informed and had a cult like following, the stock was very liquid, and there was a theory that there was a huge potential for a monster short squeeze.

CDIV’s game applications for iPad iPhone


CDIV is a company that’s based it’s reputation and share price on game applications for the iPad and iPhone. On the surface, that’s not a bad place to be considering a company like Zynga are is public and is anticipated to be one of the hottest IPO’s of the year. In theory, the Zynga IPO could potentially bring a sympathy bounce to gaming penny stocks like CDIV. However, there is one catch. The Tacoma based Cascadia Investments was basically just a trading vehicle. and while savvy traders could remain profitable, the chairs often become scarce for the inexperienced once the music stops.

CEO Nazir Maherali did a tremendous job promoting the stock, despite having virtually very few employees, or revenues. Maherali played the game by issuing several PR’s and some involved new applications, but no revenues or profits. The lesson of the story is to take your gains in stocks like CDIV that are solely meant to be traded until they produce legitimate sales. Keep in mind that many Chinese reverse merger names are halted all of the time, and while these companies are often questioned on a fundamental basis, most of them are far more sound and solvent than CDIV.

So basically, don’t hold your breathe waiting for Cascadia investments to open again. While CDIV probably re-opens (Like most halted stocks), it could take some time.

Please check back for more info on CDIV

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nflx stock NFLX StockAs most of us know, shares of NFLX stock have been and probably will remain about as volatile as hot penny stocks. Recently, Netflix has been one of those names that has a ton of smart money on both sides of the trade. For instance Jim Cramer, the the shares are ridiculously cheap and all star Morgan Keegan analyst Justin Patterson is extremely bearish. Well so far, the bulls have been right. Except for a few pullbacks, NFLX stock has basically gone straight up for the last year and a half. It’s last run to the highs came after Goldman Sachs raised its target and shorts were squeezed.

From the short perspective you have to ask yourself one old market question. Can you stay solvent longer than NFLX stock can remain irrational. Now many NFLX bears feel $80 or $90 is a fair price for these shares. That type of downside move is enormous. These types of percentage moves are often only seen in the best penny stocks. To give you an example of how crazy this run has been, hedge fund titan Whitney Tilson was even a victim of the short squeeze a while back. Covering his position at a substantial loss. This is why we preach that no matter how positive you are about a position, you always have to cut you losses as short as possible.

This is why many bears prefer to play some of these lower market, high beta stocks with put options versus shorting them. While time is often against you with options and most expire worthless, you can only lose what you put in. On the straight short play, the loss is infinite in theory, but you can stay in as long as margin is sufficiently met.

Now remember for every NFLX stock bull that says this pullback is just earnings profit taking there is a bear who thinks the shares are worth under $100. In my opinion I think being flat and on the sidelines is the best way to play NFLX stock.

Check back for more market reports, IPO market updates and alerts on some of the best penny stocks.

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nflx stock NFLX StockAs most of us know, shares of NFLX stock have been and probably will remain about as volatile as hot penny stocks. Recently, Netflix has been one of those names that has a ton of smart money on both sides of the trade. For instance Jim Cramer, the the shares are ridiculously cheap and all star Morgan Keegan analyst Justin Patterson is extremely bearish. Well so far, the bulls have been right. Except for a few pullbacks, NFLX stock has basically gone straight up for the last year and a half. It’s last run to the highs came after Goldman Sachs raised its target and shorts were squeezed.

From the short perspective you have to ask yourself one old market question. Can you stay solvent longer than NFLX stock can remain irrational. Now many NFLX bears feel $80 or $90 is a fair price for these shares. That type of downside move is enormous. These types of percentage moves are often only seen in the best penny stocks. To give you an example of how crazy this run has been, hedge fund titan Whitney Tilson was even a victim of the short squeeze a while back. Covering his position at a substantial loss. This is why we preach that no matter how positive you are about a position, you always have to cut you losses as short as possible.

This is why many bears prefer to play some of these lower market, high beta stocks with put options versus shorting them. While time is often against you with options and most expire worthless, you can only lose what you put in. On the straight short play, the loss is infinite in theory, but you can stay in as long as margin is sufficiently met.

Now remember for every NFLX stock bull that says this pullback is just earnings profit taking there is a bear who thinks the shares are worth under $100. In my opinion I think being flat and on the sidelines is the best way to play NFLX stock.

Check back for more market reports, IPO market updates and alerts on some of the best penny stocks.

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obje OBJEI just wanted to touch base with subscribers and readers on something that could be interesting next week. Last week we saw Lithium Exploration Group (LEXG:OB) make a run that a penny stock trader will be talking about for years, and now I want to touch on the psychology of what sometimes happens after those runs.

LEXG created massive gains for those who were early, and even for some who were a little late, but Friday told us a different story for those who were a in very late and didn’t sell. Between profit taking and short selling, shares of LEXG were smashed. Many saw it coming, but didn’t know exactly when the fall would happen. However, massive runs in individual penny stocks, cause those who are coming off a profitable trade to search for “the next one”.

So this week we are going to put a few names out in front of you to add to your penny stock list. Our reasoning is simple, there should be a rotation of the LEXG profits moving somewhere. Which stock will it be ? I have no idea, but I will be sure to provide you with some possibilities.

Obscene Jeans (OBJE.OB) is the first that I will touch on. OBJE is basically a retail/fashion stock that is attempting to break into the higher priced jean and sweatshirt etc. market. The stock traded made a new high on Friday and attempted to break the $3 range. A slew of PR’s have been issued, and while we have seen a big volume increase from the week before, OBJE only traded 42k shares.

obscene jeans obje OBJEAs far as fundamentals go, there really aren’t any yet, there were five PR’s though. I want to mention the PR’s because they sometimes are a prelude to future volume. OBJE is in it’s developmental stages and they actually haven’t manufactured and clothing yet. But as I touched on in prior pieces, fear and greed often take over when trading hot penny stocks, and momentum and price action often prevail over PE’s and cash flow. OBJE could also attract former Horiyoshi Worldwide (HHWW.OB) and Lyric Jeans (LYJN.PK) longs. All three are retail/fashion based stocks and some penny stock buyers have racked up huge profits in both HHWW and LYJN in the past.

Remember, we are trying to think outside of the box here because we are looking for the rotation of the LEXG funds. So add OBJE and the other LEXG rotation stocks that we will be previewing this week to your list of stocks.

Please subscribe and check back for more news on hot penny stocks, IPO markets and alerts on some of the best penny stocks to buy.

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A penny stock breakout happens when a micro cap stock moves above a resistance level on volume that is heavier than normal. Many professional investors generally buy mid to large cap stocks based on this technical aspect, because of momentum and the theory that the stock is now being owned by stronger hands.

However, many of these institutional types stay away from even the most text book penny stock breakout, due to the lack of liquidity in some of these names. Does that mean you should do the same on a retail basis ? Absolutely not. Keep in mind that most retail investors don’t impact a stocks’ liquidity because they are usually investing between $1k and $20k in an idea. Even if it’s the hottest penny stock. On an institutional basis, trades of $200k wont even come close to making a dent in the funds’ returns even if the name turns into a massive gain. This is just another reason that many hedge funds just stay away.

Although, when you check out a potential penny stock breakout from a retail standpoint, even the most skeptical chart technician has to admit that a chart is a chart, and in theory, stocks often see follow through when the set new highs or break resistance on substantial volume.

Penny Stock Breakouts


For instance, we highlighted Jammin Java (JAMB:OB) and Lithium Exploration Group (LEXG:OB)extremely early in their breakout phases as they were setting news highs. Basically, before the herd came in at the end right before both stocks pulled back sharply. Keep in mind that their are retail investors who make a living trading zombie stocks like Washington Mutual (WAMUQ.PK) and Lehman Brothers (LEHMQ.PK) based on the penny stock breakout process.

Now here is the hard part, you have to learn how to read charts and it does take time to get comfortable with this style of trading because many of these potentially hot stocks do briefly pull back after setting new highs. And sometimes, even seasoned investors can get shaken out of a mild downturn.

So if you decide that this style is for you check back or subscribe. Just remember that heavy volume is the key sign during these moves, and always keep your losses small. A penny stock breakout happens almost everyday and you want to be solvent enough to play the next opportunity.

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Penny Stocks 2010Today we are recapping three of this year’s biggest hot penny stock movers.  All of the names mentioned below seem to still be very active and volatile. This could present opportunities for trading or long term investing.  There have been some huge moves in the penny stock world this year, but these are some of the more notable and publicized companies.  Add these companies to your penny stocks list and keep your eye on them.

Cascadia Investments (CDIV.PK)



Cascadia Investments closed at 5.5 cents on December 31, 2009. CDIV is a “True Penny Stock”.  Currently CDIV is a favorite of short term penny stock traders and has basically become a very liquid cult stock with a massive message board following. CDIV is a social gaming company that is attempting to gain traction in the multi-billion dollar industry. CDIV has very little revenue despite acquiring several game apps that were developed for the iPhone. Much of the CDIV trading community views the stock as a potential short squeeze candidate. As evidenced by a move to .72 on March 10, 2010.

Rexahn Pharmaceuticals (RNN:AMEX)



Rexhan Pharmaceuticals is a clinical stage biopharma company that proved to be an explosive penny stock winner this year. RNN closed at .68 on December 31, 2009 and traded as high as $3.65 on April 12, 2010. RNN was trading in a bullish uptrend before the big price and volume spike. The move was predicated on positive data from the anxiety and depression drug Seradaxin and the potential of ED drug Zoraxel. The stock has pulled back recently and is attempting to build a base.

Radient Pharmaceuticals (RPC:AMEX)


Like Rexahn, Radient Pharma is also a biopharma company that closed at .24 cents on December 31, 2009. Onko-Sure, which is RPC’s cancer screen product attracted major interest in the stock. The low cost of Onko-Sure’s non-invasive test and distribution agreements in Russia and India propelled RPC shares to $2.19 on April 12th, 2010. Since then RPC shares have pulled back and are attempting to form a base. The shares still remain extremely volatile.

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penny stock fortunes Penny Stocks FortunesHow do investors make penny stocks fortunes ? Well, it’s not that easy. It’s human nature to think that each and every time that we are about to hit a home run when we purchase a penny stock, but it’s not that simple. The main reason is because human nature takes over and every stock seems to be the best stock when it’s purchased. It doesn’t matter if it’s a penny stock or a blue chip.

Penny stocks fortunes are made by few, but those who do it use three simple rules. They cut there losses, scale out of the positions and let the last piece of the position run.

Cutting your losses especially with volatile hot penny stocks is easier said than done, but the key to playing this game is to live to fight another day after you are stuck in a loser. For instance, if you invest 10k in a penny stock, set some sort of downside limit. To some it may be 2k, and for those who are more liquid it might be little more. This strategy will allow you buy the next idea and not be wiped out by a losing trade. For instance, how many people continually averaged down in stocks like Washington Mutual (WAMUQ.PK) and Spongetech (SPNGQ.PK) ? Only to be almost wiped out. The only people who made money on these names were penny stock scalpers, not longer term investors looking for penny stocks fortunes.

The scaling out part of the strategy is key in seeking penny stocks fortunes. In as few words as possible, take positions of in 1/3′s. If you buy 3k shares, sell 1k when you see a slight profit, then sell the next third on the next move higher. Lastly, hold the final piece for the home run price, but use a mental stop at your initial entry price. This allows you to scalp and be long term at the same time. It also allows you to play the last profitable piece of a position with little risk.

Remember everyone wants to be greedy, it’s natural. However, the key is to live another day. Successful investors don’t need to hit 70% of their trades. They just need to cut losses short and let the winners run until the fundamentals change.

Also look for more market reports, IPO news and hot penny stock alerts. Remember, penny stocks fortunes are usually not made by luck.

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