Penny Stock Marketplace

Ever look at the biggest gaining stocks for the day and wish you could have bought one of them a day earlier.  At the Penny Stock Marketplace, we have taken a break from posting and have dedicated all resources to using these stocks to produce massive gains.  Trading a stock that has jumped 70% in a day is extremely risky especially during bear markets.  A next day drop of 20 to 40 % is not uncommon.  You would not want to be on the wrong side of that.  Stay tuned and see how you can ride along with some of these small goldmines and come away with double digit gains after just one day. 

Our research is ongoing so stay tuned. 

While you are waiting, check out the “CMI” at Monkey Throw Dart for another way to beat the market.

Here’s a method that will allow you to sleep at night.  Click here and check it out.

I decided to peek in on the penny stock world while waiting for my next trade at Monkey Throw Dart.  Looking at the hyped stocks at Investors Hub, Guard Dog (Stock Symbol: GRDO) looks the most promising for a possible trade before it disappears into thin air like most of these low priced illusions do.

Click here to redirect to Monkey Throw Dart

 After reading about Vic Sperandeo’s great accomplishments several years ago, I have re-directed my focus on attaining similar returns over the next several years.  (See previous posts) The method can be followed trade by trade by entering the monkey jungle.  The system is far less complicated than typical swing or day trading, not to mention less exciting.  But if excitement is what you are looking for, you may need find another hobby. Vic’s numbers are extremely motivating if you consider compounding over 10 years.  Do the math and see for yourself.  Come join the Monkey Throw Dart world.  We’ll share a grub or two.

Warning: This is another non-penny post. 

As a trader, you go where the action is.  In this case, we had stumbled upon a stock that stood out amongst the crowd while screening for stocks with a decent 5-year record and also an upward trending price slope this year.  We eliminated all stocks that were destroyed over the last two months.  One of the gems we found was Sigma-Aldrich (Stock Symbol: SIAL). 

If the market is determined to leave the lows of the year behind, this stock could run back up to the high end of the current range.

Read Floyd Norris’ article and you will see why he says there has been no place to hide from the collapse of 2008.  With that said, lets give thanks to those stocks that gave refuge if you were lucky or smart enough to be holding them.  The five stocks listed below not only had upward trending price slopes during the year (some of them not so smooth), but they all have a respectable 5 year trend.

UST   +25%
PHLY  +60%
QCOR  +55%
PETS  +50%
PNY   +27%

Victor Sperandeo  has been a professional trader for many years and has an unparalleled trading record.  His annualized rate of return for the years 1978 to 1987 are as follows:

1978 - 115.26%
1979 - 74.48%
1980 - 98.49%
1981 - 49.99%
1982 - 127.44%
1983 - 30.79%
1984 - 12.99%
1985 - 9.58%
1986 - 10.72%
1987 - 165.36%

It is one thing to post terrific gains during boom years like the late 1990’s, but this type of consistent trading can only be the result of a disciplined approach.  During these years, Vic posted an incredible  10-year annual rate of return of 70.71% while the S&P posted a bullish 11.5%.

Here is an excerpt for his book, Trader Vic - Methods of a Wall Street Master. 

Rule Number 11:

Never buy just because the price is low.  Never sell just because the price is high.  Avoid thinking in terms like, “This thing is at historical lows, it just can’t go any lower!”  or “This thing just can’t go any higher, I’ve just got to sell it!”  The fact is, unless you see some sign of a change in trend, the chances are that the trend will continue.  When a market is at historical highs or lows, but there is no sign of a change of trend, my advice is to leave it alone and wait for signs of a change of trend.  Trade with the trend and be patient.

That is some good advice in a market that all expect to bottom and reverse.  If a Dow 7700 or 7500 must be the absolute bottom because ‘recent’ technical history says so, think again.  Calling the bottom could prove profitable if your crystal ball is working overtime, but the smart money will wait for a true trend reversal before putting cash on the long side of the trade.

As the market continues with wild up and down swings (mostly down), these two microcaps have been turning a blind eye to the death and destruction in the market.
XTL Biopharmaceuticals Ltd. (Stock Symbol: XTLB) is engaged in the development of therapeutics for the treatment of diabetic neuropathic pain and HCV. XTL is developing Bicifadine, a serotonin and norepinephrine reuptake inhibitor, for the treatment of diabetic neuropathic pain.
Tollgrade Communications, Inc. (Stock Symbol: TLGD) is a provider of hardware and software network assurance testing solutions for the telecommunications and cable broadband industries. The Company provides equipment that enables telephone companies to evaluate problems so they can ultimately repair their wire telephone lines when they are not functioning properly. When the telephone lines are out of service, the Company’s products help to diagnose the problem.

Both of these companies have taken a beating but have been bouncing up off the canvas lately for some nice gains.  If the market decides to head toward its 50 day moving average, these stocks might be a bargain. 

They are not easy to find but here are a couple of stocks that have been on an upward tear for several days now.  Any stock that can endure a day like today is worth a mention…

Omega Navigation Enterprises (Stock Symbol: ONAV)

Meadow Valley Corp. (Stock Symbol: MVCO)

We’d like to see a little more volume but a low volume retracement could lead to more upside if these two decide to come back down to earth.

If you think we are at a bottom, take a look at some of these bank stocks that are trading under $10.  If anything, many of these might be good, short-term trading fodder.  We will stay neutral on whether the market has bottomed or not.  Overnight positions are at your own risk.

SOV     Sovereign Bank
SNV       Synovus Financial
FED      Firstfed Financial
AIB       Allied Irish Banks
                               BPFH    Boston Private Financial
                               STSA     Sterling Financial
                               BPOP    Popular Inc.
                               TSFG    South Financial Group
                               UCBH    UCBH Holdings