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Trading Penny Stock List – Watchlist 10/26/09

Posted on October 25, 2009 by Penny Stocks Picker

Providing a current trading penny stock list to watch and educational articles is our mission.  Trading penny stock should not be confused with investing in penny stocks.  While some of the watchlist suggestions may make good long term penny stock investments, that is not our primary focus at this time.  We scan the penny stocks primarily for technical and psychological criteria that may signal a short term trade.  The duration of our watchlist of penny stocks to trade can be from minutes (scalp trade) to days (swing trade).  Make sure to do your homework and review our introduction article for a more detailed explanation.

Today’s Educational Tip

The Pink Sheets and OTCBB penny stocks are subject to illegal pump and dump schemes due to  limited reporting requirements and ability of company owners, other penny stock traders or groups of traders to manipulate the price movement.  When your considering trading a penny stock it’s a good idea to first do some basic research, like knowing  the current share structure or what OTC Market Tier the penny stock falls into (Trusted, Transparent, Distressed, Defunct or Toxic).  You can find out this information and much more at the Pinksheets.com website.  Another good place to begin your research is on the Investors Hub Bulletin board for a particular stock.  The iHub message board and ibox provide valuable information (like share structure history, overall psychological sentiment, etc.).  Having some basic information about a particular penny stock will help you decide if it is one you wish to trade (or invest) in. 

Penny Stock Traders Watchlist for Monday 10/26/09 

• BZCN @ .0013  (Bizauctions Inc., Last Thursday it broke below .0008 support which then became the new resistance point.  I was watching Friday, waiting for a break above .0008 with strong buying volume in the .0009s.  The .0009s went so quick that I wasn’t able to get in until .0010.  BZCN moved quickly to the .0016 resistance where profit taking was expected and then pulled back to .0011 before closing at .0013.  Current Authorized Shares (A/S) is 5 Billion of which ~426 million are Outstanding Shares (O/S) as of 6/30/09.  Psychological sentiment is more positive than negative at the moment.)
• MFLI @ .016 (Muscle Flex, Inc., Technical and Psychological play in motion!  What a classic pullback and bounce off .015 support with low volume on Friday.  News release of infomercials and product launch in November combined with the technical chart pattern makes this a relatively low risk penny stock to trade (if timed correctly).  If it breaks below .015 then it isn’t doing what I would have expected.  Make sure to have a plan.)
• PED @ .719  (Petroflow Energy Ltd., Not much chatter or volume but I like the chart for a low risk technical chart play.  The price has pulled back and bounced off support on super low volume.  I’m now looking for a change in trend to the upside but will watch to see if the support of .70 (which looks pretty solid) holds.  The risk should be minimal considering the price is close to the .70 support zone, if it breaks that, you have a good stop loss point…right?)
• AMIE @ .64 (Ambassadors International Inc.,  Another potential technical pullback and bounce play.)  
• PDMI @ .0038 (Paradigm Medical Industries Inc., Pulled back and consolidate around .0030 with volume drop off.  Nice upward price movement with further volume drop on Friday.  Message board chatter is mostly positive and upbeat.  Buy confirmed on AmericanBulls.com.) 
• BDGR @ .0262  (Black Dragon Resources Co. Inc.,  Pulled back to fill the gap up from .02 last Thursday.  It opened Friday and closed up on decreasing volume.  Currently, the overall message board sentiment is mixed.)
• ASFX @ .021 (American Scientific Resources, Inc., This one is currently in the Toxic OTC Market Tier but the chart is similar to the others suggestions I have mentioned above.)
• CYBL @ .0007 (Cyberlux Corp., Volume breakout but having trouble getting over that .0008 resistance.)