4 Technical Trades for July 2010
Hundreds of companies announced their earnings numbers to the investing public last week, and overwhelmingly, the response has been positive. Major indexes, like the S&P 500, made respectable gains to close the week, and sentiment remains strong on Wall Street. This week, with scores more companies set to take the stage and announce their second quarter numbers, the potential for continued gains is very real.
For penny stock traders, that bullish sentiment means that it’s time to take a look at potential technical setups – ones that have a high probability of triggering for short term profits. That’s exactly what we’re going to do today.
In case you’re not familiar, each week, the Penny Sleuth takes a look at a list of penny stocks that are exhibiting abnormal volume, strong technicals, upcoming news, or another catalyst that suggested they might be making a material move in the coming week.
As usual, while our Watchlist errs on the safe side of small-caps, using technical analysis to tell us where a stock is headed, we’ve opened the comments up to readers again this week, giving you the chance to offer up more speculative penny stock plays.
Check out the comments after this article to get a glimpse at a slew of new user-submitter penny stock picks – and the chance to submit your own!
iShares Global Clean Energy ETF (NASDAQ: ICLN) – Sometimes, small-cap ETFs offer pretty interesting trading setups, and with iShares’ clean energy offering, that’s exactly what’s showing up right now. This fund broke out of a bearish downtrending channel over a week ago, but shares are only just starting to look attractive. I’d put a short-term price target at $18.94.
Werner Enterprises (NASDAQ: WERN) – This transportation and logistics company should look familiar to Sleuth regulars… I talked about it last week, saying that the bullish ascending triangle pattern looked prime for a breakout. Now, shares are starting to do just that. This stock is staying on our watchlist for another week…
Core Molding Technologies (AMEX: CMT) – Core Molding Technologies is a tiny reinforced plastics manufacturer with dismal margins and significant economic headwinds. Shares have been forming a bearish descending triangle pattern for a while now, and the downside trade could finally trigger this month. CMT is this week’s sole short-side opportunity…
TechTarget (NASDAQ: TTGT) – Online IT content developer TechTarget could be forming a bearish triple top right now, but a moving average crossover could give this tiny stock the legs to move higher in a breakout. Watch shares closely, but don’t pull the trigger until the stock price clears resistance.
Share Your Penny Stock Picks…
Once again, we’re going interactive this week…
Just post your best penny stock pick in the comments section of this week’s Watchlist by Friday, July 30.
[Independence Note: Unlike scores of other penny stock resources, we’re 100% independent from the companies we talk about in the Sleuth – that means that we never accept compensation in exchange for profiling a company, and our editors never own a position in any stocks they talk about.]
Cheers,
Jonas Elmerraji
Managing Editor, Penny Sleuth
July 26, 2010
Jonas Elmerraji
A big-four public accounting alum, Jonas Elmerraji brings his readers extensive expertise in small-cap stocks and broad market moves. Elmerraji’s interest in the market started with an investing course in elementary school – today he holds a degree in financial economics from UMBC and specializes in blending fundamental and technical analysis. Elmerraji has contributed to Forbes, TheStreet.com, and Investors Business Daily among others. He is managing editor of the Penny Momentum Trader, and a co-editor of Penny Stock Fortunes.
The Penny Sleuth, presented by Agora Financial, features articles on penny stocks, options, small-cap stocks, pink sheet stocks and OTCBB coverage.
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NUSMF is my small cap penny stock pick for a long hold. The comapny is using new, and proven, mining technology adapted from deep oil drilling to mine the gold just laying on the ocean floor off of Papua New Guinea. The stock is just recovering from the jolt the junior gold stocks received by the enormous sell-off of gold by the big banks and Paulson’s hedge fund that hapened a little more than a week ago.
My pick is SPMI , Looking for a 2 to 3 Bagger soon
“YRCW” was up 3.5c and i think it will go much higher .
After market close, and the nasdaq ‘only’ up 27 points, after bouncing around for 2 months straight, i realize
I am sitting on a goldmine of stocks in my portfolio of currently 309, heavily leveredged in the nsdq. I resisted
the urge to sell anything today, or last week. An across the board gain of over $2,100 in a day is not bad for a small time hedge fund manager. …These stocks i offer for your perusal are ‘not’ going to be bought for ‘pennies’, …but if you have a few thousand in cash, …you might want to take a look and invest for maximum gain profits in the future. These are Not going away. I bought them in late ’08, and early ’09. I am holding long on them….I have doubles and 3 baggers, …but I can see the 10 and 20 baggers a few years from now. …..KTOS- kratos defense, …HOGS- Zhongpin inc. , …OCLR- oclaro., …ARNA- Arena pharmaceutical, ….These are all i will offer for now, I am back to research mode. have a nice week!
NPHC & XCHO are my picks that I have been posting here for sometime and now they are starting to really gear up! Just do a little DD and you will see why these two companies will soar in the second half of this year. Cobroxin – The 1st OTC pain reliever to treat moderate to severe pain is now in full distribution across the US and heavy TV advertising will begin 7/28/10 that will send sales soaring. Cobroxin has virtually no side effects, no drug interactions and is non=addictive, plus it works amazingly to block pain. They also have come out with Nyloxin(same as Cobroxin) for overseas dist. and NyloxinRX(Prescription strength) that was just announced that Henry Schein Dist. will be handling. Xenacare(XCHO) is the licensed US distributor for Cobroxin by NutraPharma(NPHC). NPHC also has an aresenal of products that they are quickly progressing with to treat MS and HIV. NPHC is the most undiscovered gem that is about to explode in the 2nd half of this year and yesterday they jumped up 62% from.16 to .26 and that is only the beginning as they are just being discovered for what they have! Checkem out!
I bought 500 shares of exact sciences dirt cheap in late 2008. …Sold out EXAS for what was a nice profit
sometime in ’09. …I needed someone to smack me across the back with a baseball bat last year and tell me to hold longer. …..sunofabitch! …There is ‘no way’ i can ever buy them for under $1.00 again, but they are on my radar again for the next downturn, hopefully around $3.25 per share. ….sunofabitch! …just damn…